Why a superficial disciplinary process cost one employer £61,000

Thorough investigation

Every case must start with a balanced investigation. Employers should gather facts, interview relevant parties, and avoid assumptions. A weak investigation is often the reason tribunals rule against employers.

Impartial decision-making

The person investigating should not be the same person deciding the outcome. Independence prevents bias and strengthens credibility.

Clear communication

Employees must receive written notice of allegations, details of the evidence, and reasonable time to prepare their defence.

Right to representation

The employee can be accompanied by a trade union representative or colleague. Denying this right may automatically render the process unfair.

Appeal opportunity

Employees should be offered the right to appeal to a separate manager or director who had no prior involvement.

Best practice tips for running a fair disciplinary process

A well-structured disciplinary process should be consistent, documented, and rooted in fairness. Here’s how to get it right:

• Plan the process carefully – Assign different individuals to investigation, hearing, and appeal roles.
• Communicate throughout – Keep the employee informed about each stage and ensure clarity on expectations.
• Document everything – Maintain records of meetings, evidence, and rationale for decisions. Documentation is often your best defence in tribunal.
• Balance timeliness and thoroughness – Avoid unnecessary delay but don’t sacrifice depth for speed.
• Be proportionate – Match sanctions to the severity of misconduct; dismissal should always be a last resort.
• Ensure consistency – Apply the same standards to all employees to avoid claims of discrimination.

By embedding these best practices, employers demonstrate compliance with the ACAS Code, creating a strong foundation for fair and defensible outcomes.

Common mistakes employers make during the disciplinary process

Even well-intentioned employers can make errors that undermine fairness. The most common include:

• Skipping the investigation stage – Jumping straight to a disciplinary hearing without gathering evidence.
• Failing to suspend appropriately – Either neglecting suspension when serious misconduct is alleged or using it punitively without justification.
• Not keeping written records – Lack of notes or documentation can make it impossible to defend a claim.
• Allowing bias – Letting personal views influence outcomes instead of facts.
• Inconsistent treatment – Applying different standards for similar conduct among employees.

Avoiding these pitfalls strengthens credibility and demonstrates procedural integrity if challenged later.

Implement a clear, legally compliant disciplinary policy

Every SME should have a written disciplinary policy that outlines how misconduct or capability issues will be handled. This policy should align with the ACAS Code of Practice on Disciplinary and Grievance Procedures, which sets the benchmark for fairness in UK employment law.

A good policy includes:

• The stages of the disciplinary process (investigation, hearing, outcome, and appeal).
• Examples of what constitutes misconduct or gross misconduct.
• Guidance on timescales, representation rights, and possible sanctions.
• Having this framework ensures decisions are consistent, defensible, and transparent.

Review and update procedures regularly

Employment law evolves constantly — and so should your policies. SMEs should review their disciplinary process and employee handbook at least annually to ensure compliance with new legislation and case law (such as Shah v Food Hub Ltd or Royal Mail v Jhuti).

Even small procedural gaps — for instance, outdated templates or unclear timelines — can be exploited in tribunal claims. A regular policy review demonstrates due diligence and helps maintain a culture of fairness.

Train line managers and supervisors

Line managers are often the first to identify issues that may trigger disciplinary action. However, many receive little or no formal training in how to handle these situations correctly.

Providing disciplinary process training gives managers the confidence to:

• Conduct fair and balanced investigations.
• Handle meetings sensitively and lawfully.
• Recognise when to escalate issues to HR professionals.

Trained managers not only reduce legal risk — they also help sustain a positive workplace culture built on trust and accountability.

Keep detailed records and evidence

In any disciplinary matter, documentation is your best defence. SMEs should record every stage of the process — from initial concerns and investigation notes to hearing minutes and final decisions.

These records serve three vital purposes:

• They show compliance with the ACAS Code.
• They provide evidence of fairness and transparency.
• They protect the employer if a case ever reaches tribunal.

Even simple, well-kept records can demonstrate that your disciplinary process was handled objectively and consistently.

Seek early advice from HR professionals

One of the most common mistakes SMEs make is waiting until a problem escalates before seeking help. By the time dismissal or tribunal proceedings are on the table, damage is often done.

Getting early guidance from an experienced HR consultant ensures that:

• Every step of the disciplinary process is handled lawfully.
• Wording in letters and outcome documents is accurate.
• Risks are assessed before decisions are made.

Working with experts like impact HR gives SMEs the reassurance that their disciplinary actions are both fair and defensible.

Promote a culture of fairness and transparency

A strong disciplinary process isn’t just about compliance — it’s about creating a culture where employees understand expectations, trust management, and feel they’ll be treated fairly.

By embedding fairness and accountability into everyday operations, SMEs reduce the likelihood of disputes and improve employee engagement.