Acas has launched a consultation on updating its statutory Code of Practice on disciplinary and grievance procedures, with a greater emphasis on resolving workplace issues informally and at an early stage to reduce costs, improve productivity and support staff wellbeing.
The workplace expert said the revised Code is intended to help employers and workers deal with concerns in a fair, transparent and timely way, encouraging early intervention before disputes escalate into formal disciplinary or grievance procedures.
The consultation comes as Acas research estimates that UK employers spend £2.36 billion a year managing formal disciplinary and grievance processes, compared with around £250 million annually on informal resolution methods such as workplace discussions and mediation.
Acas chair Baroness Maggie Jones said the evidence highlighted the benefits of tackling workplace conflict before it became formal.
“Acas research shows that formal processes can be very costly for everyone involved. Effective early intervention in conflict saves money and time as well as promoting staff wellbeing and productivity,” she said.
“Our new Code reflects the benefits of handling work issues early and informally. It will help employers and workers handle concerns in a way that's fair, transparent and timely. I would encourage everyone to take part in the consultation.”
The statutory Code, last fully revised in 2009, currently applies where disciplinary action may be taken against a worker or when an employee raises a formal grievance. It provides guidance for employers, workers and representatives on handling disciplinary and grievance situations.
Employment tribunals must take the Code into account when considering relevant cases and can increase or reduce compensation awards by up to 25 per cent where either an employer or worker has unreasonably failed to follow its provisions, taking into account the size and resources of the organisation.
Alongside encouraging earlier and more informal resolution of workplace conflict, the draft updated Code also seeks views on improving the handling of formal disciplinary and grievance procedures.
Acas has also published findings from a new YouGov survey of more than 1,000 senior decision-makers in British businesses, which explored the factors that best support informal conflict resolution.
The poll found that the three most important factors were having a good working relationship with the other person (58 per cent), a shared willingness to find a solution (53 per cent) and a workplace culture that supports open conversations (52 per cent).
Other factors identified included having the time and space for open discussions (47 per cent), confidence to raise issues directly (45 per cent), access to support from managers, HR or colleagues (38 per cent), clear workplace policies on informal conflict resolution (29 per cent), access to a neutral mediator (28 per cent) and conflict resolution tools or resources (17 per cent).
Acas' 2021 research estimated there are around 374,760 formal grievances each year, costing employers an average of £951 in management time per case, while 1.7 million disciplinary cases cost an average of £1,141 each, contributing to the overall annual cost of £2.36bn.
The eight-week consultation opened on 30 July and closes on 23 September 2026.