Acas Proposes Overhaul of Workplace Dispute Rules to Cut Costs
Published on 07/31/2026 at 19:07 | Redaktion boerse-global.de
The Advisory, Conciliation and Arbitration Service (Acas) has launched a public consultation on updating its statutory Code of Practice on disciplinary and grievance procedures, in a move that could reshape how UK employers handle workplace conflict. The draft code, published in late July 2026, prioritises early and informal intervention as a way to ease the financial strain on businesses.
Informal Resolution Could Save Billions
Formal disciplinary and grievance procedures currently cost UK employers around £2.36 billion a year, according to Acas data. Resolving disputes informally, by contrast, costs an estimated £250 million annually — a difference the watchdog is keen to close.
The push comes as research shows 44% of UK adults have experienced workplace conflict in the past year. The draft code argues that tackling issues before they escalate into formal proceedings can save significant resources and reduce disruption for businesses of all sizes.
When workplace conflict escalates into formal procedures, the costs and disruption can spiral quickly. Keeping your wider health and safety documentation in order helps you stay on the right side of compliance and avoid costly penalties. A free toolkit provides ready-to-use risk assessments, checklists and templates that cover key UK regulations like the Health & Safety at Work Act 1974 and COSHH. Download the free Health & Safety Toolkit
AI, Mediation and Modern Workplaces
The revised code introduces guidance on the use of artificial intelligence (AI) in disciplinary and grievance processes, with Acas seeking feedback on how the technology should be handled. Mediation and fairness principles also receive greater emphasis.
Other updates include:
- Enhanced guidance on discrimination protections.
- Clarification of the right to be accompanied at hearings.
- Limits on the duration and use of employee suspensions.
- Requirements for earlier, more consistent informal communication.
The current code dates from 2015, with the last comprehensive revision completed in 2009.
Tribunal Awards at Stake
The consultation opened on July 30, 2026 and runs until September 23, 2026. Acas chair Baroness Maggie Jones has urged employers, employees and legal professionals to submit their views.
Compliance matters beyond good practice: employment tribunals can adjust awards by up to 25% where there has been an unreasonable failure to follow the code. That gives businesses a strong financial incentive to align their policies with the updated standards once finalised.
With tribunals able to adjust awards by up to 25% for unreasonable failures to follow the code, staying compliant has never been more important. Many UK employers unknowingly fall short of their legal obligations under the Health & Safety at Work Act 1974. A free toolkit with 9 ready-to-use tools — including risk assessments, checklists and a directors' liability guide — helps you close those gaps quickly. Get the free Health & Safety at Work Act Toolkit
Acas will review submissions after the consultation closes in September before sending the revised code to Parliament for approval.
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