Potential new requirement for informal resolution in disciplinary and grievance procedures

Acas has launched a consultation on updating its statutory Code of Practice on disciplinary and grievance procedures.

The proposed change of most interest would be a requirement for employers:

• To attempt informal resolution of disciplinary or performance concerns before formal action.

• If matters move to a formal hearing, to set out in writing what informal steps were taken to try to resolve the concerns, or the reason why none were taken.

Informal resolution is already often a feature of disciplinary and performance management policies. However, the proposed changes, if they come into force, will place added emphasis on such measures; paradoxically risking adding an element of formality. Failure to follow a requirement of the Code is relevant to the tribunal’s assessment of fairness in an unfair dismissal claim and, if the claim succeeds, can result in an increase in compensation of up to 25%.

The proposed amended Code would also impose similar requirements on employees who have a grievance; i.e. to attempt informal resolution and to set out those informal steps in writing if they pursue the grievance to the formal stage. The draft Code also suggests that, if possible, the employee should set out how they would like their concern to be resolved.

The consultation closes on 23 September 2026 and we will report on the outcome when we have it. We will also cover the proposals in an autumn seminar (details of which will be announced nearer the time). In the meantime, please do not hesitate to contact us if you have any questions.

Source: Acas consultation: draft Code of Practice on disciplinary and grievance procedures