ACAS Code of Practice on Disciplinary and Grievance Procedures

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Workplace disputes are an inevitable part of professional life. Whether it is a disciplinary issue or a grievance raised by an employee, having a fair and transparent procedure is essential. The ACAS Code of Practice on Disciplinary and Grievance Procedures provides clear guidance on how employers and employees should handle such matters.

This guide explains the key principles of the ACAS Code, how disciplinary and grievance procedures should be conducted, and why compliance is crucial for both employers and employees.

What is the ACAS Code of Practice on Disciplinary and Grievance Procedures?

The ACAS Code of Practice on Disciplinary and Grievance Procedures is a set of guidelines provided by the Advisory, Conciliation and Arbitration Service (ACAS) to help businesses handle workplace disputes fairly and lawfully.

It outlines best practices for dealing with disciplinary issues and employee grievances to maintain a positive work environment and reduce legal risks.

Key Features of the ACAS Code:

Encourages fair and transparent handling of disciplinary and grievance matters
Provides clear steps for addressing workplace issues
Promotes early conflict resolution to prevent disputes from escalating
Helps employers comply with UK employment law and avoid tribunal claims

While not legally binding, employment tribunals consider whether an employer has followed the Code when handling disputes. Failure to adhere to the guidelines can result in increased compensation awards for employees in tribunal cases.

Why ACAS Code is Important for Employers and Employees?

The ACAS Code plays a crucial role in ensuring that both employers and employees follow a fair and structured process when dealing with workplace disputes.

Importance for Employers:

Provides a legally recognised framework for disciplinary and grievance procedures
Reduces the risk of legal action and potential compensation claims
Helps maintain a positive and compliant work environment
Ensures consistency in handling disputes, preventing accusations of unfair treatment

Importance for Employees:

Offers clear guidance on their rights and responsibilities in workplace disputes
Ensures that disciplinary actions and grievances are handled fairly and consistently
Provides an opportunity to challenge decisions through an appeals process
Reduces the risk of unfair dismissal or mistreatment

By following the ACAS Code, both employers and employees can contribute to a more transparent and constructive workplace culture.

What Are the Principles of the ACAS Code?

The ACAS Code of Practice on Disciplinary and Grievance Procedures provides a structured approach to handling workplace disputes fairly and effectively. It is designed to ensure fair treatment, transparency, and consistency when dealing with disciplinary and grievance issues in the workplace.

This Code applies to disciplinary issues, such as misconduct or poor performance, and grievances, which are concerns or complaints raised by employees. However, it does not cover redundancy dismissals or the non-renewal of fixed-term contracts upon expiry.

Key Principles of the ACAS Code:

Fairness and Transparency: Employers should develop clear rules and procedures for handling disciplinary and grievance issues. These procedures must be written, specific, and accessible to all employees. Employees and their representatives should be involved in developing workplace policies to ensure clarity and fairness.
Prompt and Consistent Action: Issues should be dealt with as soon as they arise to prevent unnecessary escalation. Unreasonable delays in meetings, decisions, or confirmations should be avoided. Employers must act consistently when applying disciplinary or grievance procedures to maintain fairness.
Investigation and Evidence: Employers must carry out thorough investigations to establish the facts before making decisions. Investigations may involve reviewing documents, emails, or CCTV footage, interviewing witnesses or colleagues, or gathering performance records or complaints.
Right to Be Informed and Respond: Employees should be informed in writing about any disciplinary case against them. The notification must include details of the alleged misconduct or performance issue, supporting evidence, and possible consequences. Employees must have a fair opportunity to respond to allegations before any decision is made.
Right to Be Accompanied: Employees have a statutory right to be accompanied at formal disciplinary or grievance meetings. The companion may be a fellow worker, a trade union representative, or a union official certified as competent to accompany the worker. Employers must agree to a reasonable request for accompaniment, and meetings should be postponed for up to five working days if the chosen companion is unavailable.
Opportunity to Appeal: Employees should be given the right to appeal any formal decision made against them. Appeals should be heard without delay at a mutually agreed time and place. They should be handled impartially by a manager not previously involved in the case. Employees also have the right to be accompanied by a representative at appeal hearings.

How Are Disciplinary Procedures Handled Under the ACAS Code?

Disciplinary procedures deal with employee misconduct or poor performance. Employers must ensure a structured, fair, and legally compliant approach when managing disciplinary cases.

Key Steps in a Disciplinary Process:

Establish the Facts: Employers must investigate potential misconduct without unreasonable delay. In misconduct cases, where practical, different individuals should conduct the investigation and disciplinary hearing.
Inform the Employee: If a case for disciplinary action is established, the employer should issue a written notification detailing the misconduct or poor performance, supporting evidence, the date, time, and location of the disciplinary hearing, and the employee’s right to be accompanied.
Hold a Disciplinary Hearing: Meetings should take place promptly while allowing employees reasonable time to prepare. Employees must have the opportunity to present their case, respond to allegations, and ask questions or call witnesses.
Decide on Appropriate Action: After the hearing, the employer must determine whether disciplinary action is justified. Possible outcomes include no action, verbal or written warnings, final written warnings for serious offences, or dismissal for gross misconduct.
Provide the Right to Appeal: Employees who believe disciplinary action is unfair or unjust must be allowed to appeal. The appeal should be heard impartially by a different manager.

How Are Grievance Procedures Handled Under the ACAS Code?

A grievance procedure allows employees to raise concerns, problems, or complaints about workplace issues, such as unfair treatment, discrimination, or safety concerns.

Key Steps in a Grievance Process

Raise the Grievance Formally: If an issue cannot be resolved informally, employees should submit a formal written grievance to a manager not involved in the issue.
Hold a Grievance Meeting: Employers should arrange a grievance meeting promptly. Employees should be given a chance to explain their concerns and suggest possible resolutions.
Right to Be Accompanied: Employees have a statutory right to bring a companion to grievance meetings. The chosen companion can sum up the employee’s case, respond to views expressed, and confer with the employee during the meeting.
Decision and Action: Employers must investigate the complaint and provide a written decision on how they plan to address the issue.
Right to Appeal: If an employee is not satisfied with the outcome, they can appeal. Appeals should be handled impartially by a manager not involved in the original grievance.

Special Cases Under the ACAS Code

Handling Trade Union Representatives: If disciplinary action is being considered against a trade union representative, employers should follow the standard disciplinary procedure and discuss the matter with a union official after obtaining the employee’s consent.
Dealing with Criminal Offences: If an employee is charged with or convicted of a criminal offence, disciplinary action is not automatically justified. Employers must consider the impact of the charge on the employee’s role and the relationship with colleagues and customers.
Overlapping Grievance and Disciplinary Cases: If an employee raises a grievance during a disciplinary process, the employer may pause the disciplinary process to address the grievance first or handle both issues together if they are closely related.

How Should Employers Handle Disciplinary Procedures?

A disciplinary procedure is used when an employer needs to address employee misconduct, poor performance, or any breach of workplace policies. The ACAS Code provides a step-by-step approach to ensure fair handling of disciplinary cases.

Step 1: Identifying the Issue

Employers should assess whether the issue is minor and can be resolved informally or whether it requires a formal disciplinary procedure.

Step 2: Conducting an Investigation

A fair and impartial investigation should be carried out to gather relevant evidence. This may include:

Reviewing documents, emails, or CCTV footage
Interviewing witnesses or other employees
Collecting any performance-related data

Step 3: Notifying the Employee

If disciplinary action is necessary, the employee must receive a written notice stating:

The specific allegations against them
The supporting evidence
The potential outcomes of the disciplinary process
The date, time, and location of the disciplinary hearing

Step 4: Holding a Disciplinary Hearing

During the hearing, the employer must:

Explain the allegations and present the evidence
Allow the employee to respond and provide their explanation
Permit the employee to be accompanied by a representative

Step 5: Making a Decision

After considering all the evidence and responses, the employer should decide on an appropriate course of action, which may include:

No action if the case is unproven
A verbal or written warning
Suspension or demotion
Dismissal in severe cases

Step 6: Offering an Appeal

The employee should be given a chance to appeal the decision. The appeal should be handled by someone who was not involved in the original case to ensure impartiality.

How Can Employees Raise a Grievance Under the ACAS Code?

A grievance is a concern, problem, or complaint raised by an employee about their workplace, colleagues, or management. The ACAS Code provides a structured way for employees to address grievances effectively.

Step 1: Informal Resolution

Employees are encouraged to discuss their concerns with their employer or manager first. Many issues can be resolved without the need for formal procedures.

Step 2: Submitting a Formal Grievance

If informal discussions do not resolve the issue, the employee should submit a written grievance detailing:

The nature of the complaint
Relevant supporting evidence
The desired resolution

Step 3: Employer Investigation

The employer must investigate the complaint fairly, which may involve:

Speaking to witnesses
Reviewing relevant documents
Considering company policies and employment laws

Step 4: Holding a Grievance Meeting

A formal grievance meeting should be scheduled where the employee can explain their concerns in detail. The employer should listen carefully and ask relevant questions.

Step 5: Decision and Response

After the meeting, the employer should provide a written response outlining their decision and any proposed actions to resolve the issue.

Step 6: Right to Appeal

If the employee is not satisfied with the decision, they can appeal the outcome, which should be handled by an impartial senior manager or external mediator.

What Are the Common Mistakes Employers Make in Disciplinary and Grievance Procedures?

Employers sometimes fail to follow best practices, leading to unfair treatment and potential legal consequences. Some common mistakes include:

Lack of Proper Investigation: Acting too quickly without gathering all the necessary facts.
Failing to Follow Written Procedures: Not having clear disciplinary and grievance policies in place.
Inconsistent Decision-Making: Treating similar cases differently, leading to discrimination claims.
Not Allowing Employee Representation: Denying employees their right to have a colleague or union representative present.
Ignoring the Right to Appeal: Not giving employees a fair chance to challenge decisions.

Employers who avoid these mistakes and follow the ACAS Code reduce the risk of legal disputes and workplace conflicts.

How Can Businesses Ensure Compliance with the ACAS Code?

Employers can take proactive steps to ensure they comply with the ACAS Code and handle workplace disputes effectively.

Best Practices for Compliance:

Develop Clear Policies: Have written disciplinary and grievance policies that align with the ACAS Code.
Provide Regular Training: Train managers and HR personnel on proper procedures.
Encourage Open Communication: Address concerns early to prevent disputes from escalating.
Keep Records of All Proceedings: Maintain detailed documentation of investigations, hearings, and decisions.
Use Mediation When Necessary: Consider third-party mediation to resolve conflicts before they reach formal grievance or disciplinary procedures.

By following these best practices, businesses can create a fair and legally compliant workplace while fostering positive employee relations.

Conclusion

The ACAS Code of Practice on Disciplinary and Grievance Procedures plays a crucial role in ensuring fair treatment in the workplace. Employers must follow a structured approach to disciplinary and grievance issues to avoid legal risks and maintain a positive work environment.

By implementing clear policies, training managers, and handling disputes professionally, businesses can create a fair and compliant workplace that benefits both employers and employees.

FAQs

What is the difference between a disciplinary and a grievance procedure?

A disciplinary procedure is used when an employer needs to address employee misconduct, while a grievance procedure allows employees to raise workplace concerns.

Can an employee refuse to attend a disciplinary hearing?

An employee can refuse, but this may result in the employer making a decision based on available evidence.

How long should a grievance process take?

The process should be completed as soon as possible, ideally within a few weeks, depending on the complexity of the case.

Is the ACAS Code legally binding?

No, but employment tribunals take it into account when assessing claims.

What are an employee’s rights during a disciplinary process?

Employees have the right to be informed of allegations, respond to them, be accompanied at hearings, and appeal decisions.

Can an employer dismiss an employee without following the ACAS Code?

Yes, but failing to follow the Code may result in an unfair dismissal claim.

What role does ACAS play in workplace disputes?

ACAS provides guidance, training, and mediation services to help resolve workplace disputes fairly.