How much does bickering in the breakroom cost employers? The price of a peace-offering pizza Friday? Perhaps a strategically deployed box of fancy biscuits? According to the Advisory Conciliation and Arbitration service, (Acas) employers across the country are allotting a bigger budget to workplace disputes due to delayed action unnecessary formalities.
Acas estimates that formal disciplinary and grievance procedures cost UK employers £2.36 billion each year, with 44% of working-age adults having experienced workplace conflict within the 12 months prior to their most recent research report.
In light of these record highs, it’s no wonder the advisory office are proposing some changes to Disciplinary and Grievance Procedures in the hopes that we can work together to ‘Fix the Friction’.
While the changes are not yet final – meaning businesses don’t need to rewrite their policies immediately – this is a good opportunity to review your policies and identify potential improvements.
What’s Changing?
Acas is proposing a significant update to its Code of Practice with an overarching message for employers: deal with workplace concerns earlier, more proportionately and with greater focus on resolution.
The existing Acas Code has not been fully revised since 2009, and the redraft would broaden its focus beyond formal disciplinary and grievance procedures, emphasising the importance of early and informal resolution of workplace concerns. As a result, employers will need to demonstrate that they have considered whether an issue can be resolved earlier and more constructively.
Informal resolution
One of the biggest proposed changes is the introduction of a clearer expectation that employers consider informal resolution before defaulting to a formal disciplinary process.
Some initial steps could include:
- A conversation to clarify workplace expectations
- Offering extra training in a specific area
- Exploration of a reasonable adjustment
- Mediation
There will, of course, be situations in which formal resolution is unavoidable, but the new requirement asks that in these instances, employers ensure that steps have already been taken to resolve the issue informally, or justification is provided as to why they haven’t.
The same principle would apply to employees raising formal grievances: they would be expected to explain what informal steps had already been taken, or why none had been.
Investigations and suspensions
While the requirement for fair and reasonable investigations is still expected in the draft code, it places greater emphasis on ensuring that fact-finding is objective, proportionate, and appropriate – in other words, let’s not overreact.
Suspension, for example, should not be treated as an automatic step when a disciplinary investigation begins. The proposed Code makes clear that it should be used only in limited circumstances, such as when necessary to protect the investigation, the business, other staff, or the individual concerned. Employers should also keep suspension under review and communicate appropriately with the employee.
Reasonable adjustments
The draft Code also introduces specific guidance around avoiding unlawful discrimination and making reasonable adjustments when handling workplace concerns.
While the underlying legal duties are not new, in that employers already have obligations under the Equality Act 2010, bringing reasonable adjustments directly into the Acas Code reinforces their importance in disciplinary and grievance procedures.
These adjustments could include:
- Changes to meeting arrangements
- Document adaptation
- Accommodating communication methods or support provided
Businesses should therefore consider whether managers know how to recognise when an adjustment may be required.
Shorter and more focussed grievances
The draft Code also addresses concerns about long and complex written grievances, proposing that employees should provide a short, clear explanations when initially raising a concern, with the opportunity to provide further information if necessary.
This will hopefully mean that a grievance doesn’t necessarily need to become a 30-page document before it’s taken seriously, and in turn, employees will be more likely to raise something before it escalates.
Mediation and facilitated conversations
The proposed Code gives greater prominence to mediation and facilitated conversations as tools for resolving workplace conflict. These could potentially be used at different stages of a dispute rather than simply relying on a formal disciplinary or grievance process.
For businesses, this refreshed guidance should remind both employers and employees of the existence of a middle ground between doing nothing and starting a formal process.
What these changes could mean for you
The proposed changes point towards a more proactive approach to employee relations, that consider everyone’s time and could be more realistic for a busy, fast-paced workplace to keep up with.
Making appropriate adaptations, however, is more than just good practice – it’s essential. Employment tribunals must take the Code into account in relevant cases, and an unreasonable failure to comply might result in compensation being increased or reduced by up to 25%.
Practical steps you can take now
There’s no need to overhaul your entire HR framework just yet, but it’s a good idea to use the consultation period as an opportunity to stress-test your existing disciplinary and grievance procedures. The consultation closes on 23 September 2026, and the final Code may change before it is approved and brought into effect.
Start by asking yourself:
- Are informal discussions being documented appropriately?
- Are managers confident handling difficult conversations?
- Are reasonable adjustments properly considered?
- Do your policies reflect how your business actually operates?
If any of your answers are unclear, or differ from that of your team, it could be time for a more extensive review.
From reviewing your current HR policies and disciplinary and grievance procedures to supporting managers with employee relations issues, EKW Group’s HR team can help you to stay ahead of changing employment requirements and put practical steps in place now.
