The manager's guide to disciplinary and grievance handling
The ACAS Code of Practice sets the minimum fair process for handling discipline and grievances.
This guide sets out the steps the ACAS Code of Practice on disciplinary and grievance procedures asks you to follow, the statutory right to be accompanied, how appeals should be handled, the tribunal consequences of an unreasonable failure to follow the Code, and how it applies to short-service and probationary employees, including the change to the unfair dismissal qualifying period from January 2027.
What the ACAS Code covers
- The Code is a statutory Code of Practice, issued under section 199 of the Trade Union and Labour Relations (Consolidation) Act 1992.
- It has applied since 11 March 2015 to how employers and employees handle disciplinary action and grievances at work.
- The Code does not apply to dismissals for redundancy or to the non-renewal of a fixed-term contract on its expiry.
- It does not set a minimum length of service before it applies to a disciplinary or grievance case.
- Employment tribunals take the size and resources of the employer into account when deciding relevant cases, under the Code's own guidance.
The disciplinary process, step by step
- Establish the facts through an investigation before deciding whether to take disciplinary action.
- Inform the employee in writing of the alleged misconduct or poor performance, with enough information to respond, including copies of the evidence.
- Advise the employee of their right to be accompanied in that written notification.
- Hold a meeting so the employee can set out their case and respond to the allegations.
- Decide on appropriate action based on the facts, and confirm the decision to the employee in writing.
- Give the employee the right to appeal, and confirm how to do so.
The right to be accompanied
- The right is set out in section 10 of the Employment Relations Act 1999.
- A companion can be a fellow worker, a trade union representative, or an official employed by a trade union.
- The companion can address the hearing to put and sum up the employee's case, and respond on their behalf, but cannot answer questions for them.
- If the chosen companion is not available at the proposed time, postpone the hearing to a time the employee proposes, provided it is reasonable and falls within five working days of the original date.
Suspension during an investigation
- The Code states that suspension should not be considered a disciplinary action.
- Before suspending, check whether the investigation can proceed without it.
- Keep any suspension as brief as possible and under review.
- Confirm the suspension to the employee in writing, including the reason and that it is not a disciplinary sanction.
The grievance process, step by step
- Grievances are concerns, problems or complaints that employees raise with their employer.
- The employee should raise the grievance formally and in writing, without unreasonable delay.
- Hold a meeting without unreasonable delay so the employee can explain the grievance.
- The employee has the same statutory right to be accompanied at a grievance meeting as at a disciplinary meeting.
- Decide on the appropriate action and communicate it to the employee in writing, without unreasonable delay.
- If the grievance is not resolved, give the employee the right to appeal the decision.
Handling appeals fairly
- Deal with the appeal impartially.
- Wherever possible, have a manager who was not previously involved in the case hear the appeal.
- The same right to be accompanied applies at an appeal hearing as at the original meeting.
- Confirm the outcome of the appeal to the employee in writing without unreasonable delay.
Getting it wrong: the tribunal uplift
- Under section 207A of the Trade Union and Labour Relations (Consolidation) Act 1992, a tribunal can adjust an award by up to 25 per cent for an unreasonable failure to follow the Code.
- The adjustment can increase an award against the employer, or reduce an award against the employee, depending on whose failure was unreasonable.
- Tribunals decide the adjustment on what is just and equitable in the circumstances.
- The adjustment applies to a range of tribunal claims, including unfair dismissal and Equality Act discrimination claims, not only to claims with a length-of-service qualifying period.
Keep a written record at every stage
- ACAS guidance states that employers would be well advised to keep a written record of any disciplinary or grievance case they deal with.
- Record the investigation, the written notice, what was discussed at each meeting, the decision, and any appeal.
- Keep records secure and limit access to those who need them.
- Where a grievance is raised during a disciplinary process, the Code allows the disciplinary process to be paused to deal with the grievance, or for the two to be dealt with together if they are related.
Short service and probation
- The Code does not set a minimum length of service before it applies to a disciplinary or grievance case.
- Right now, an employee normally needs two years' continuous service to bring an ordinary unfair dismissal claim.
- From 1 January 2027, that qualifying period reduces to six months, under the Employment Rights Act 2025.
- Claims that have never had a qualifying period, such as Equality Act discrimination claims and whistleblowing detriment claims, apply from day one regardless of length of service or probation.
- Follow the Code's steps for any formal disciplinary or grievance case during probation; the process does not change because service is short.
Getting disciplinary and grievance handling right
- Follow the Code's six disciplinary steps: investigate, inform in writing, meet, allow a companion, decide and confirm in writing, and offer an appeal.
- Follow the Code's five grievance steps: raise in writing, meet without unreasonable delay, allow a companion, decide and respond in writing, and offer an appeal.
- Tell the employee of their right to be accompanied at every formal meeting.
- Keep any suspension brief, under review, and confirmed in writing as not a disciplinary sanction.
- Keep a written record of every stage; a tribunal can adjust an award by up to 25 per cent for an unreasonable failure to follow the Code.
- Apply the same process regardless of length of service, and prepare for the unfair dismissal qualifying period change in January 2027.
How Jamie HR helps
- Case records that log every step of a disciplinary or grievance case in one place.
- Letter templates for invitations, outcomes and appeal decisions, ready to adapt and send.
- Meeting notes and evidence stored securely against the employee record.
- Policy library so managers can apply the same fair process across the business.