What is the ACAS Code of Practice?

The ACAS Code is practical guidance approved by Parliament for managing disciplinary and grievance matters at work.

The ACAS Code of Practice on disciplinary and grievance procedures was introduced to promote good practice in handling these issues. Issued under section 199 of the Trade Union and Labour Relations (Consolidation) Act 1992, it applies across all workplaces in Great Britain, regardless of size.

It distinguishes between disciplinary situations, which involve alleged misconduct or poor performance, and grievances, which are employee complaints about work-related issues. Employers should have written procedures aligned with the code, making it accessible to staff.

Purpose and Scope of the ACAS Code of Practice

It aims to ensure fair treatment, reduce disputes, and guide tribunals on reasonable procedures.

The main purpose of the ACAS code of practice is to help employers and employees resolve issues informally where possible and formally when needed, fostering better workplace relations. Its scope covers all employees and workers, including handling absence, capability, and conduct.

It encourages early resolution to avoid escalation to employment tribunals, saving time and costs for everyone involved. For example, a manager addressing poor performance early can prevent a full disciplinary process.

Key Principles Including Procedural Fairness

Core principles emphasise investigation, notification, representation, and appeals for fairness.

Procedural fairness is at the heart of the ACAS code of practice, requiring employers to act reasonably and consistently. This includes conducting a thorough investigation before decisions, informing the employee of allegations in writing, and holding a meeting where they can respond.

Employees have the right to be accompanied at meetings by a colleague or union representative. Decisions must be based on evidence, and there should always be a right to appeal. These steps ensure no one is dismissed without a fair chance to defend themselves.

For instance, if an employee is accused of theft, the employer must gather witness statements and CCTV evidence impartially before any meeting.

• Establish facts promptly and consider all evidence
• Notify in writing with enough details
• Hold a meeting without unreasonable delay
• Decide on the basis of the meeting
• Allow an appeal meeting

Steps in Disciplinary Procedures Under the ACAS Code

The code outlines a clear sequence from investigation to appeal for handling misconduct.

Disciplinary procedures start with an informal chat if minor, but formal steps kick in for serious issues. Employers must investigate thoroughly, then provide a written statement of allegations, including potential sanctions.

A formal meeting follows, where the employee responds. Possible outcomes range from no action to dismissal. Any sanction short of dismissal, like a warning, should be time-limited.

An appeal must be heard by a more senior manager, with the original decision upheld, overturned, or adjusted.

1. 1. Informal resolution if possible
2. 2. Investigation
3. 3. Notify of allegations in writing
4. 4. Arrange disciplinary meeting
5. 5. Hold meeting with right to accompany
6. 6. Inform of decision in writing
7. 7. Appeal process

Steps in Grievance Procedures

Grievances follow a similar fair process, starting with a written complaint and meeting.

For grievances, employees submit a written complaint detailing the issue. The employer acknowledges it promptly and arranges a meeting to discuss.

The employer investigates if needed and responds in writing with actions. If unresolved, an appeal meeting occurs. This mirrors disciplinary fairness to ensure complaints are taken seriously.

Examples include bullying complaints or pay disputes; the process helps document and resolve them effectively.

1. 1. Employee writes grievance
2. 2. Employer acknowledges
3. 3. Investigate and hold meeting
4. 4. Respond in writing
5. 5. Appeal if needed

Employer Obligations Under the ACAS Code of Practice

Employers must follow reasonable procedures, inform staff, and train managers.

Employer obligations include having clear, written procedures shared with staff and training line managers on them. They must treat all cases consistently, avoiding discrimination.

The code stresses confidentiality and record-keeping for transparency. Failure here can undermine the process's fairness.

For self-representing employees, pointing to specific code breaches strengthens tribunal claims.

• Publish procedures
• Train staff
• Act consistently
• Keep records confidentially

How Employment Tribunals Consider the ACAS Code

Tribunals take the code into account when assessing reasonableness in dismissal claims.

Under section 207 of the Trade Union and Labour Relations (Consolidation) Act 1992, tribunals must consider the ACAS code of practice when relevant, such as in unfair dismissal cases.

If an employer deviates unreasonably, it can tip a borderline fair dismissal into unfair. Employees should reference specific code paragraphs in their ET1 form.

Sanctions for Failing to Follow the ACAS Code

Unreasonable failure can lead to up to 25% uplift in compensation awards.

Sanctions are not direct fines but impact tribunal awards. If an employer unreasonably fails to follow the code, tribunals can increase compensation by up to 25% in unfair dismissal or other claims.

Conversely, employee unreasonable failure can reduce awards by 25%. This incentivises both sides to comply.

In a real case, procedural flaws led to a higher payout despite substantive fairness.