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 10 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."
The 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
- 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. They 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 3 picked were:
- having a good working relationship with the other person – 58%
- a shared willingness to find a solution – 53%
- a workplace culture that supports open conversations – 52%
The consultation on the draft Code closes on 23 September 2026.
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Background notes
- The Acas consultation on the draft Code of Practice on disciplinary and grievance procedures will run for 8 weeks from 30 July 2026. The closing date for responses is 11.59pm on 23 September 2026.
Acas's report on 'Estimating the costs of workplace conflict' (2021) revealed that:
- there is an estimated average of 374,760 formal grievances each year – the average cost in management time of a formal grievance is estimated at £951, giving a total cost to employers across the economy of £356 million
- there are an estimated 1.7 million formal disciplinary cases in UK organisations each year – the estimated average cost of each disciplinary case is approximately £1,141, resulting in an economy-wide total cost to employers of £2 billion
- UK employers spend a total of £2.36 billion managing disciplinary and grievance procedures each year
- in contrast, informal resolution, which comprises informal discussion and workplace mediation, is estimated to cost UK employers £250 million annually
Read the full report: Estimating the costs of workplace conflict
Acas commissioned YouGov to poll employers and employees in a representative sample of British businesses. The surveys were carried out online and the total sample size was 1,050 senior decision makers. Fieldwork was undertaken from 27 April to 6 May 2026. All figures, unless otherwise stated, are from YouGov Plc, have been weighted and are representative of British business size and region.
Nine hundred and ninety eight respondents reported that they try to resolve disputes informally first. These were asked which, if any, of the following helps your business resolve workplace conflict informally?
The results were:- having a good working relationship with the other person – 58%
- a shared willingness to find a solution – 53%
- a workplace culture that supports open conversations – 52%
- having the time and space to have an open conversation – 47%
- feeling confident to raise the issue directly – 45%
- availability of support from a manager, HR, worker representative or colleague – 38%
- a workplace policy providing clear guidance on informal conflict resolution – 29%
- availability of a neutral person to help – eg for example, a mediator or colleague – 28%
- access to tools or resources – 17%
- other – 2%
- don't know – 5%