In an unexpected development, Acas yesterday launched a consultation on updates to its statutory Code of Practice on disciplinary and grievance procedures.
According to Acas’s press release, the Code is being revised to encourage early and informal resolution of concerns at work. Acas research on the annual cost of conflict has found that managing formal disciplinary and grievance procedures is estimated to cost UK employers 2.36 billion per year, whereas the annual cost of informal resolution is around 10 times lower at 250 million. The consultation aims to “start a conversation about how we can disagree better at work”.
By way of reminder, the Code provides guidance to employers, workers and representatives on handling disciplinary and grievance situations in the workplace. An unreasonable failure to comply with the Code may lead to an increase (or reduction) in any Tribunal award by up to 25%. The Code was last fully revised in 2009.
We believe that Acas’s proposed changes to the Code are very significant and could have a potentially transformative impact on workplace disputes. We will therefore be saying (much!) more about the proposed changes, but in the meantime, below is a summary of the key changes in the draft Code. These include:
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