ACAS Code of Practice

Why does the ACAS Code of Practice matter for your business?

• Compliance risk: Ignoring the Code can expose organisations to costly tribunal claims. For example, if an employee is dismissed without a fair hearing, a tribunal may increase compensation by up to 25%.
• Consistency: Following the Code ensures that employees are treated equally, helping prevent discrimination or bias.
• Reputation management: Companies that follow best practice are seen as fair and responsible employers, strengthening their employer brand.
• Employee relations: Transparent and fair processes improve employee trust and engagement. Staff are more likely to raise concerns internally rather than escalating them legally.
• Strategic advantage: Businesses that embed the Code into everyday HR practices experience fewer disputes, reduced absence, and stronger retention rates.

ACAS Code of Practice – best practices for employers

To meet the standards of the ACAS Code of Practice, employers should:

• Create robust policies: Draft disciplinary and grievance policies that align directly with the ACAS Code. These should be shared with staff and regularly updated.
• Communicate clearly: Ensure employees know how to raise a grievance and what the process will be. Clarity prevents misunderstandings.
• Follow a staged process: In disciplinary cases, this usually means investigation → written notice of hearing → meeting → decision → right of appeal.
• Document everything: Keep accurate records of meetings, evidence, decisions, and communications. These documents are vital if the case reaches a tribunal.
• Provide training: Line managers should be trained in how to conduct investigations, hearings, and appeals in line with the Code.
• Use mediation where possible: ACAS strongly encourages informal resolution or mediation before matters escalate.
• Seek HR support: External HR consultants or legal advisors can provide objective guidance, especially in complex or high-risk cases.