The ACAS Code of Practice on Disciplinary and Grievance Procedures is the benchmark for handling workplace disputes in the UK. While it is not legally binding in itself, employment tribunals are required by law to take it into account when considering relevant cases. An unreasonable failure to follow the Code can result in compensation being increased by up to 25%.
Core Requirements for Disciplinary Procedures
Establish the Facts
Carry out a prompt and thorough investigation before taking any formal action. Do not jump to conclusions or take disciplinary action based on assumptions.
Inform the Employee
Write to the employee setting out the allegations and the evidence. Provide copies of relevant documents. The employee needs sufficient detail to understand the case against them and prepare their response.
Hold a Meeting
Arrange a meeting at a reasonable time and place. The employee must be given the opportunity to:
- Hear the allegations presented
- Respond to each allegation
- Present their own evidence
- Call witnesses (where reasonable)
- Be accompanied by a trade union representative or work colleague
Decide and Communicate
After the meeting, decide on the appropriate outcome and communicate it in writing. The letter should explain the reasons for the decision and the employee's right to appeal.
Allow an Appeal
The employee must be given the right to appeal. The appeal should ideally be heard by someone more senior who was not involved in the original decision.
Core Requirements for Grievance Procedures
The Code also covers grievances raised by employees:
- The employee should raise their grievance in writing
- The employer should arrange a meeting without unreasonable delay
- The employee has the right to be accompanied
- The outcome should be communicated in writing
- An appeal must be offered
The 25% Uplift
If an employer unreasonably fails to follow the Code, a tribunal can increase any award by up to 25%. Conversely, if an employee unreasonably fails to follow it (for example, refusing to engage with the grievance process), the award can be reduced by up to 25%.
What the Code Doesn't Cover
The Code does not apply to:
- Redundancy dismissals
- Non-renewal of fixed-term contracts
- Dismissals during probation (though best practice suggests following it anyway)
- Collective grievances or disputes
Make sure your procedures are ACAS-compliant. Our contracts and handbooks service includes drafting disciplinary and grievance procedures that meet the Code's requirements. Get a free review.