Definition
Guidance published by the Advisory, Conciliation and Arbitration Service setting out principles for handling disciplinary and grievance matters at work. While not legally binding, the Code establishes the minimum standards of fairness expected by employment tribunals.
UK Context
The ACAS Code of Practice on Disciplinary and Grievance Procedures (last updated 2015) is the primary reference point for workplace discipline in the UK. Employment tribunals must take the Code into account, and an unreasonable failure to follow it can result in up to a 25% increase or decrease in compensation awards under the Trade Union and Labour Relations (Consolidation) Act 1992.
Best Practices
- Ensure all managers are trained on the ACAS Code requirements before handling disciplinary or grievance matters
- Follow the Code's five-step process: investigate, inform, hold a meeting, decide on action, provide right of appeal
- Review internal disciplinary and grievance procedures regularly to ensure alignment with the Code
Frequently Asked Questions
Is following the ACAS Code legally required?
The Code is not legally binding, but employment tribunals are required to take it into account. Unreasonable failure to follow the Code can result in a 25% uplift in compensation awards. Following the Code is therefore strongly recommended.
Does the ACAS Code apply to redundancies?
The Code does not apply to redundancy dismissals, non-renewal of fixed-term contracts, or dismissals during probation in most circumstances. However, employers should still follow fair procedures in these situations based on other ACAS guidance.