ACAS is consulting on the biggest update to its Code of Practice on disciplinary and grievance procedures since 2009 and there is a clear theme running through it: resolve issues earlier, and where appropriate, informally.
And the numbers are pretty compelling.
ACAS estimates that UK employers spend around £2.36 billion every year managing formal disciplinary and grievance procedures. By comparison, informal resolution, including informal conversations and workplace mediation, is estimated to cost around £250 million.
That doesn’t mean employers should stop using formal processes. There will always be situations where a proper investigation, disciplinary or grievance procedure is absolutely the right approach.
But not every difficult conversation needs to become a formal process.
The proposed Code places greater emphasis on addressing concerns early, encouraging open conversations and looking for opportunities to resolve conflict before positions become entrenched.
For us, this makes complete sense.
We see first-hand how quickly a relatively manageable workplace issue can escalate when difficult conversations are avoided. Equally, we see the difference that early intervention, a well-handled conversation or independent mediation can make.
Interestingly, ACAS’ latest research found that employers believe good working relationships, a shared willingness to find a solution and a culture which supports open conversations are the biggest factors in successfully resolving conflict informally.
A note on suspensions
The draft Code is much clearer that suspension should not be an automatic response while an investigation takes place. It says suspension should only be considered where it is genuinely necessary. For example, to protect the investigation, the organisation, other employees or the individual themselves.
Where suspension is necessary, it should be kept as brief as possible and regularly reviewed, with the decision communicated sensitively and with a clear explanation that suspension is not disciplinary action. This reinforces the message that suspension should be a considered risk-management decision, rather than simply the default starting point for a disciplinary investigation.
The message for employers?
Don’t wait until something becomes a grievance or disciplinary matter before dealing with it.
Give managers the confidence and training to have difficult conversations. Create a culture where concerns can be raised early. And when relationships are becoming difficult, consider whether mediation or another form of early intervention could prevent the situation becoming a formal dispute.
Sometimes good HR isn’t about knowing how to run a process- it’s knowing when you might be able to avoid one altogether.
The ACAS consultation is open until 23 September 2026. Lots more to come. Let’s see how it unfolds.
