Acas updates its Code of Practice as formal disciplinaries estimated to cost employers 2 billion a year

Workplace expert, Acas, has today launched a consultation on updates to its Code of Practice on disciplinary and grievance procedures to promote early and informal resolution of concerns at work.

The new Code will help employers and workers handle concerns in a fair, transparent and timely way. Employers and workers have rights and responsibilities and handling concerns that come up early and informally can save on costs and stress at work.

Acas research on the annual cost of conflict has found that managing formal disciplinary and grievance procedures is estimated to cost UK employers £2.36 billion a year, while the annual cost of informal resolution is around ten times lower at £250 million.

Acas Chair, Baroness Maggie Jones, said: “Acas research shows that formal processes can be very costly for everyone involved. Effective early intervention in conflict saves money and time as well as promoting staff wellbeing and productivity.

“Our new Code reflects the benefits of handling work issues early and informally. It will help employers and workers handle concerns in a way that’s fair, transparent and timely. I would encourage everyone to take part in the consultation.”

Acas statutory Code of Practice on disciplinary and grievance procedures was last fully revised in 2009. It currently applies where there is potential for disciplinary action to be taken against a worker or where a worker raises a formal concern or grievance with their employer.

The purpose of the Code is to provide employers, workers and representatives with guidance on handling disciplinary and grievance situations in the workplace.

Employment tribunals must take the Code into account in relevant cases and can increase or reduce an award by up to 25% for unreasonable failure to follow the Code by an employer or worker. Size and resources of the organisation are taken into account.

As well as promoting the benefits of informal and early resolution of conflict, the draft updated Code also seeks views on how to improve handling formal procedures.

Acas has also published a new YouGov poll today, which asked British businesses about what options best help their organisations to resolve workplace conflict informally. The top three picked were:

  • Having a good working relationship with the other person (58%);
  • A shared willingness to find a solution (53%); and
  • A workplace culture that supports open conversations (52%).

The consultation on the draft Code closes on 23 September 2026.

To respond please see: https://www.acas.org.uk/about-us/acas-consultations/code-of-practice-disciplinary-grievance-2026

Acas publishes new Code of Practice on flexible working

Workplace expert, Acas, has published its new statutory Code of Practice on requests for flexible working alongside accompanying guidance.

From today, all employees will have the right to ask their employer if they can work flexibly from their first day of employment. This right previously only applied if employees worked for their employer for 26 weeks or more.

Susan Clews, Acas Chief Executive, said: “There has been a global shift to flexible working following the pandemic, which has allowed more people to better balance their working lives and employers have also benefitted from being an attractive place to work.

“Our new Code aims to foster flexible working further and covers the new law changes. It sets out good practice on flexible working requests and will help employers and employees avoid any pitfalls.

“There are many types of flexible working such as part-time working, flexitime, job sharing, staggered hours, hybrid and homeworking. The starting position for businesses should be to consider what may be possible.”

The new Code covers the new changes to the law around statutory flexible working requests. These are:

  • A new right to request flexible working from the first day of employment
  • Allowing an employee to make two flexible working requests in any 12-month period rather than one
  • A new requirement that an employer must not reject a request without consulting the employee first
  • Employers now having two months to decide on the request rather than three months.

The new Code underwent a consultation process in its draft form last year. 77% of respondents to the consultation agreed that Acas should reconsider the overall good practice principles when updating the Code to reflect changes to the law.

The Code encourages employers to take a positive approach to flexible working so that requests are not rejected by default without due consideration and an open dialogue about what may be workable.

It is important for employers to comply with the Code as any breach may be considered by an employment tribunal for relevant cases.

Acas has also published new detailed guidance to accompany the Code, which provides practical examples for employers and employees on flexible working requests.

The new Code and guidance can be seen at: www.acas.org.uk/flexibleworking