ACAS Code of Practice
Understanding the ACAS codes and why they matter for your policies
What is ACAS and why does it matter?
ACAS (Advisory, Conciliation and Arbitration Service) is an independent public body that provides free and impartial advice on workplace relations and employment law in England, Scotland, and Wales.
ACAS publishes Codes of Practice and guidance that set out the principles employers should follow in various workplace situations. While not all ACAS guidance is legally binding, certain Codes of Practice have special legal status.
Key Point
ACAS guidance helps employers understand their legal obligations and implement fair, consistent procedures. Following ACAS guidance significantly reduces tribunal risk.
The 25% Tribunal Uplift
The main ACAS Code of Practice (on disciplinary and grievance procedures) has special legal significance. Under section 207A of the Trade Union and Labour Relations (Consolidation) Act 1992:
Up to 25% Increase in Compensation
If an employer unreasonably fails to follow the ACAS Code of Practice on Disciplinary and Grievance Procedures, an employment tribunal can increase any compensation award by up to 25%.
Conversely, if an employee unreasonably fails to follow the Code, the tribunal can reduce compensation by up to 25%. This makes it crucial for both parties to follow proper procedures.
Key ACAS Codes of Practice
ACAS issues several Codes of Practice. The most important for HR policies are:
Code 1: Disciplinary and Grievance Procedures
The most important Code. Sets out principles for handling disciplinary and grievance matters fairly. This is the Code that triggers the 25% uplift/reduction.
Key Requirements:
- • Carry out reasonable investigation before disciplinary action
- • Inform employee of allegations in writing before any hearing
- • Allow employee to be accompanied at disciplinary/grievance hearings
- • Give employee opportunity to state their case
- • Provide right of appeal
Code 2: Disclosure of Information to Trade Unions
Covers employers' duties to disclose information for collective bargaining purposes.
View on ACAS websiteCode 3: Time Off for Trade Union Duties and Activities
Sets out guidance on paid time off for union duties and unpaid time off for union activities. A revised version reflecting the Employment Rights Act 2025 (including time off for union equality representatives) is expected to come into force in October 2026.
View on ACAS websiteCode 4: Settlement Agreements
Guidance on settlement agreements (formerly "compromise agreements"), covering when and how they should be used.
View on ACAS websiteCode 5: Requests for Flexible Working
In force since 6 April 2024. Sets out how employers should handle statutory flexible working requests, which employees can make from day one of employment.
View on ACAS websiteCode of Practice vs. Guidance
It's important to understand the difference between ACAS Codes and ACAS Guidance:
Codes of Practice
- Approved by Parliament
- Can be taken into account by tribunals
- Code 1 triggers 25% uplift rule
- Stronger legal weight
ACAS Guidance
- Published by ACAS directly
- Best practice recommendations
- Not binding but persuasive
- Covers many more topics
ACAS publishes extensive guidance on topics like absence management, redundancy, flexible working, bullying, and much more. While not legally binding in the same way as Codes, following this guidance demonstrates good practice.
Disciplinary & Grievance Procedures
The ACAS Code on Disciplinary and Grievance Procedures is the most important for employee handbooks. Here's what your policies should include:
Disciplinary Procedure Must Cover:
- 1.Investigation before any formal action
- 2.Written notification of allegations before hearing
- 3.Right to be accompanied at hearings
- 4.Opportunity for employee to respond
- 5.Decision made by someone with authority
- 6.Written confirmation of decision
- 7.Right of appeal (heard by different person)
Grievance Procedure Must Cover:
- 1.How to raise a grievance (in writing)
- 2.Meeting arranged without unreasonable delay
- 3.Right to be accompanied at meetings
- 4.Investigation where appropriate
- 5.Written response with reasons
- 6.Right of appeal
Right to be Accompanied
One of the most important ACAS Code requirements is the right to be accompaniedat disciplinary and grievance hearings. This is a statutory right under the Employment Relations Act 1999.
Who Can Accompany?
- • A fellow worker (colleague)
- • A trade union representative
- • An official employed by a trade union
Important Limitations
There is no statutory right to be accompanied by a solicitor, family member, or friend. Some employers allow this as a matter of policy, but it's not legally required.
How Bounda Helps with ACAS Compliance
Bounda automatically checks your policies against ACAS Code requirements:
Policy Analysis
When you analyse a disciplinary or grievance policy, Bounda flags any missing ACAS Code requirements as ACAS/Guidance Risk findings.
Severity Classification
Findings are classified by type: Legal Non-Compliance (statutory breach), ACAS/Guidance Risk (Code violation), or Best Practice Gap (advisory improvement).
Source Citations
Every finding cites the specific ACAS Code paragraph or legislation, so you know exactly what's required and can verify it yourself.
AI Redrafting
When redrafting a policy, Bounda aligns it with the ACAS Code and includes appropriate references to the Code in your document for you to review.
Bounda helps with the routine work of checking, explaining and updating your disciplinary and grievance procedures — so you can reserve professional legal advice for the individual cases that genuinely require it.
Quick Tips for ACAS Compliance
Reference the Code: Include a statement that your procedure complies with the ACAS Code of Practice on Disciplinary and Grievance Procedures.
Document everything: Keep records of investigations, meetings, decisions, and appeals. Good documentation protects you at tribunal.
Act promptly: Don't delay disciplinary or grievance proceedings without good reason. The Code requires action "without unreasonable delay."
Train managers: Ensure anyone who may conduct hearings understands the Code requirements and follows them consistently.
Know when to get advice: Getting your written procedure right is something most businesses can do themselves. A specific high-stakes case — a dismissal, a whistleblowing angle, or a grievance that overlaps with a discrimination claim — is where specialist HR or legal advice usually earns its cost.
Frequently Asked Questions about the ACAS Code
What is the ACAS Code of Practice?
The ACAS Code of Practice is a set of practical guidelines published by the Advisory, Conciliation and Arbitration Service (ACAS) that set out principles for handling workplace situations. The most important code covers Disciplinary and Grievance Procedures. While not law, failure to follow the code can result in tribunal compensation being increased by up to 25%.
Is the ACAS Code of Practice legally binding?
The ACAS Code of Practice is not directly legally binding, but it has special legal status. Employment Tribunals must take the code into account when relevant, and can increase or decrease compensation by up to 25% if either party unreasonably fails to follow it. This makes following the code strongly advisable.
What happens if I don't follow the ACAS Code?
If you unreasonably fail to follow the ACAS Code of Practice, an employment tribunal can increase any compensation award against you by up to 25%. This can add thousands of pounds to an already significant claim. Conversely, if an employee fails to follow the code, their compensation can be reduced by up to 25%.
What does the ACAS disciplinary code require?
The ACAS Code on Disciplinary and Grievance Procedures requires employers to: establish facts through investigation, inform the employee in writing, hold a meeting to discuss the issue, allow the employee to be accompanied, decide and inform of outcome, and provide an appeal opportunity. All steps must be completed without unreasonable delay.
What is the difference between ACAS Code and ACAS Guidance?
ACAS Code of Practice has special legal status and tribunals must consider it - failure to follow can affect compensation by 25%. ACAS Guidance is best practice advice that helps interpret the code but doesn't carry the same legal weight. Both should be followed, but the Code is more critical.
Does your disciplinary procedure follow the Acas Code?
Paste your disciplinary or grievance procedure into Bounda and see where it falls short of the Acas Code — before a tribunal does the checking for you.
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