The ACAS Code of Practice: Disciplinary & Grievance Procedures Explained

Handling employee concerns or misconduct is never easy. But if your disciplinary and grievance procedures aren’t aligned with the guidelines set by the Advisory, Conciliation and Arbitration Service (ACAS), your business could face serious risks, including employment tribunal claims, financial penalties, and reputational damage.

For UK employers, following ACAS guidance isn’t just best practice; it can significantly affect the outcome of employment disputes. In this guide, we’ll explain what the ACAS Code requires, why it matters, and how to ensure your procedures are compliant.

What Is the ACAS Code of Practice?

The ACAS Code of Practice on Disciplinary and Grievance Procedures is a statutory code published by ACAS (the Advisory, Conciliation and Arbitration Service). It sets out the minimum standards employers should follow when handling workplace disciplinary and grievance issues, covering investigation, notice, the right to be accompanied, and the right to appeal.

The ACAS Code of Practice isn’t legally binding in itself, but employment tribunals are required to take it into account. If an employer unreasonably fails to follow the ACAS Code of Practice, a tribunal can increase compensation by up to 25%.

Read the full ACAS Code of Practice.

What Are Disciplinary and Grievance Procedures?

Disciplinary and grievance procedures are the formal processes employers use to address workplace issues.

Typically, they cover:

Disciplinary procedures

• Employee misconduct
• Poor performance
• Breaches of company policy

Grievance procedures

• Complaints about workplace treatment
• Concerns about management decisions
• Issues such as bullying, harassment, or discrimination

The ACAS provides a Code of Practice that outlines how employers should handle these situations fairly, consistently, and legally.

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Why ACAS Compliance Matters

While the ACAS Code is not technically law, employment tribunals strongly consider it when judging cases.

If an employer fails to follow the ACAS Code, a tribunal can increase compensation awards by up to 25%.

Likewise, if an employee unreasonably fails to follow the process, compensation may be reduced.

This means following the ACAS framework can help businesses:

• Demonstrate fairness in workplace decisions
• Reduce the risk of tribunal claims
• Protect against increased financial penalties
• Maintain employee trust and transparency

Compliance issues rarely come one at a time. If you’re reviewing your disciplinary processes, it’s worth checking your right to work checks are equally robust, both carry serious penalties if they’re not handled correctly.

Key ACAS Principles Employers Must Follow

The ACAS Code is built around several core principles designed to ensure fairness.

1. Investigate Issues Properly

Before taking disciplinary action, employers must carry out a reasonable investigation to establish the facts.

This may include:

• Reviewing evidence
• Interviewing witnesses
• Gathering documentation

Rushing straight to disciplinary action without investigation can lead to unfair dismissal claims.

2. Inform Employees of the Issue in Writing

Employees must receive clear written details of the allegation or grievance.

This should include:

• The nature of the complaint or misconduct
• Possible consequences
• Supporting evidence

This ensures employees understand the situation and can prepare a response.

3. Hold a Formal Meeting

A disciplinary or grievance issue should always be discussed at a formal meeting.

Employees also have the right to be accompanied by:

• A colleague
• A trade union representative

Providing the opportunity for employees to explain their side is a core requirement of fair procedure.

4. Allow an Appeal

If a disciplinary decision is made, employees must have the right to appeal the outcome.

Appeals should ideally be handled by a different manager or decision-maker to ensure impartiality.

Is Your Business HR Compliant? Learn more.

Common Mistakes Employers Make

Even well-meaning businesses can accidentally breach ACAS guidance.

Some common mistakes include:

• Skipping investigations
• Poor documentation of meetings and evidence
• Inconsistent disciplinary decisions
• Not giving employees the right to appeal
• Having outdated or unclear HR policies

These mistakes can significantly weaken an employer’s position in disputes.

Do Your Policies Reflect ACAS Guidance?

Many businesses rely on template policies written years ago, which may no longer reflect current best practices.

To stay compliant, employers should regularly review:

• Disciplinary procedures
• Grievance procedures
• Employee handbooks
• Investigation processes

Aligning these with the ACAS Code ensures your workplace processes are fair, transparent, and legally defensible.

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When to Seek HR Support

Handling disciplinary or grievance issues incorrectly can quickly escalate into complex legal problems.

Professional HR support can help with:

• Investigations and documentation
• Policy creation and updates
• Managing difficult employee relations cases
• Ensuring compliance with ACAS best practice

This support can make the difference between resolving an issue internally and facing an employment tribunal.

Need Help Managing Disciplinary or Grievance Procedures?

If you want to ensure your business follows the latest ACAS guidance and HR best practice, the team at Centric HR can help.

From policy reviews and HR audits to hands-on support with employee relation issues, Centric HR provides expert HR advice, from Level 7 CIPD qualified practitioners, and advice that’s tailored to your business.

👉 Contact Centric HR today to ensure your disciplinary and grievance procedures are fully compliant and protecting your organisation.