Employment: To the Point (September 2026)

ACAS has published a draft revised Code of Practice on disciplinary and grievance procedures together with a consultation which closes on 23 September 2026. This is a significant update of the ACAS Code of Practice which has not been substantially amended since 2015. The main areas of change include:

• Informal resolution: The draft Code places greater emphasis on early resolution of workplace concerns. Informal resolution is contained in the body of the draft Code (rather than the Foreword to the existing Code) meaning tribunals will be able to take into account informal actions to resolve concerns early in relevant cases potentially leading to 25% adjustment to compensation. The draft Code introduces a new expectation for employers to state, when notifying a worker of a formal disciplinary meeting, what prior steps have been taken to resolve the matter informally.
• Language and tone: There is a move towards a less adversarial and legalistic tone, in keeping with the new focus on early informal resolution.
  • Reference to “concerns” rather than “disciplinary” and “grievance” issues save for where they are needed for clarity in describing formal procedures. 
  • Also, references to “workers” rather than “employees” as ACAS considers it good practice for employers to follow the Code for both workers and employees. However, it is consulting on this and it acknowledges that the uplift for unreasonable failure to comply with the Code remains only available to employees.
• Avoiding unlawful discrimination: The draft Code includes provisions for making reasonable adjustments and avoiding other forms of discrimination. 
• Suspensions: The draft Code provides additional guidance on suspensions, noting that it can have a significant impact on the working relationships and the people involved. It should only be considered if it is necessary to comply with a legal requirement or in specified circumstances.
• Mediation and facilitated conversations: There is a new section encouraging mediation or a facilitated conversation to resolve a concern.  It involves appointing an independent third party who is impartial and an accredited mediator or trained facilitator. The draft Code stipulates that they can be someone external or a trained, independent individual within the organisation. 
• Training and record keeping: There is a new emphasis on encouraging employers to provide training and support to help managers, workers and representatives build skills and confidence in this area, and on confirming in writing steps and discussions from informal resolution onwards. 

There is no timeline given for when the draft Code will come into force, but it represents a significant change to disciplinary and grievance procedures. For the first time, early informal resolution, a duty to make reasonable adjustments for disability and the use of mediation and facilitated conversations are contained in the body of the draft Code which could impact on the compensation awarded by a tribunal.

The government has launched a consultation seeking views on a comprehensive reform of the current equal pay framework and how to address gaps and inconsistencies in the framework currently affecting disabled people, those from ethnic minority groups and outsourced workers.  

The government is proposing a strategy focusing on 2 key phases.  Phase 1 will look at improving the current system by streamlining procedures and strengthening transparency e.g. requiring employers to publish information about pay and conditions in job adverts, and enforcement e.g. reducing the exceptions to a tribunal being able to require employers to out an equal pay audit. Once the government is satisfied the system is improved, Phase 2 will broaden protections to close gaps in the law. For example, ensuring that pay discrimination on the basis of race and disability is taken as seriously as sex, levelling-up the equal pay scheme including permitting the use of hypothetical comparators in equal pay claims and increasing protections for outsourced workers.

This is a wide-ranging consultation and may herald significant changes to the law on equal pay.  The consultation closes on 27 October 2026.

The government has just published its response to the consultation on improving access to flexible working.  Its next steps will be to:

• Introduce regulations setting out a process that employers must follow before rejecting a statutory flexible working request.
• Bring the reasonableness test (from the Employment Rights Act 2025) into force, so a request may only be refused if it is reasonable on prescribed grounds.

The government intends that both of these changes will take effect in Autumn 2027. 

Also, ACAS will publish a draft update to its Code of Practice on requests for flexible working for public consultation. This will set out new statutory guidance for employers and employees and will take effect at the same time as the legislative reforms. The government will also consider what other information and guidance may be needed to support implementation of these reforms.