ACAS Code of Practice

The fairness standard for disciplinary and grievance procedures that tribunals use to adjust compensation — get it badly wrong and an employer's award can rise by up to a quarter, on top of everything else.

Does every employment tribunal claim involve the ACAS Code of Practice?

No. The uplift or reduction power under section 207A only applies where the claim concerns a matter covered by the Code, and where the Code itself applied to the situation — broadly, dismissal and disciplinary or grievance matters. It does not apply to every type of employment tribunal claim, such as most straightforward redundancy or discrimination-only claims.

Is the ACAS uplift automatic if the employer got the process wrong?

No. The tribunal must find that the failure to follow the Code was unreasonable, and that it is just and equitable to adjust the award. A minor or technical slip is less likely to justify the maximum 25% uplift than a serious departure from a fair process, such as no investigation or no right of appeal.

Can an employee's own conduct lead to a reduction instead?

Yes. Section 207A works both ways — if an employee unreasonably fails to follow the Code, for example by refusing to engage with a grievance or disciplinary process, the tribunal can reduce their compensation by up to 25% as well.

Does the uplift apply to the whole award or just part of it?

The adjustment applies to the compensatory award, not the basic award or other separate heads of loss. There has been detailed case law on exactly which elements of loss the uplift bites on, so the precise calculation can depend on the specific facts of the claim.

What does the ACAS Code of Practice actually require?

In broad terms, it sets out a fair process for handling disciplinary and grievance issues: investigate before deciding, tell the employee what is alleged and the possible consequences, hold a meeting, allow the employee to be accompanied, decide proportionately, and give a right of appeal.

Is the ACAS Code the same as ACAS Early Conciliation?

No, they are different things. ACAS Early Conciliation is the compulsory pre-claim step most people must go through before issuing an employment tribunal claim. The ACAS Code of Practice is a separate set of standards for how employers should handle disciplinary and grievance matters at work.

Why the Code matters beyond just "being fair"

The ACAS Code of Practice is not itself a piece of legislation you can bring a claim under directly — you cannot sue someone simply for breaching the Code. Its real force comes through section 207A of the Trade Union and Labour Relations (Consolidation) Act 1992, which lets an employment tribunal adjust the compensatory award in a relevant claim by up to 25% where a party unreasonably failed to follow it.

In practice, this means the fairness of the process an employer followed, not just the underlying decision to dismiss or discipline, can directly affect how much compensation is awarded. A dismissal that might otherwise attract a modest award can end up significantly higher if the employer skipped an investigation, held no meeting, or denied the employee any right of appeal.

What the Code expects from a fair process

• Establish the facts first.
• Carry out a reasonable investigation before deciding what action, if any, to take.
• Inform the employee properly.
• Tell them what is alleged and the possible outcomes, and give them the evidence in advance of any meeting.
• Hold a meeting and allow them to respond.
• Give the employee a genuine opportunity to put their case, usually with the right to be accompanied by a colleague or trade union representative.
• Decide proportionately and allow an appeal.
• Any sanction should be reasonable in the circumstances, and the employee should be offered a right to appeal the decision.

An employee is dismissed for alleged misconduct following a single short conversation, with no formal investigation, no written allegations shared in advance, and no right of appeal offered. The tribunal finds the dismissal unfair and calculates a compensatory award of £12,000 based on lost earnings.

Compensatory award before adjustment

Compensatory award after uplift

Because the employer's process fell so far short of the Code — no investigation, no advance notice of the case against the employee, and no appeal — the tribunal considers the maximum 25% uplift appropriate, on top of the underlying finding that the dismissal itself was unfair.

ACAS Early Conciliation

Trade Union and Labour Relations (Consolidation) Act 1992, s.207A

ACAS Code of Practice on disciplinary and grievance procedures

ACAS Code of Practice — Employment Tribunal Glossary

What the ACAS Code of Practice requires, how the 25% uplift and reduction under section 207A works, and how it affects tribunal awards.