WEDNESDAY BLOG

HR Fact: Understanding the ACAS Code of Practice and Why It Matters for Employers

Many employers are aware of the ACAS Code of Practice, but not everyone understands how important it is when managing workplace issues.

The Advisory, Conciliation and Arbitration Service (ACAS) provides guidance for employers on how to manage disciplinary and grievance situations fairly.

While the Code itself is not legislation, it carries significant legal weight.

What Does the ACAS Code Cover?

The Code sets out best practice procedures for:

• disciplinary processes
• employee grievances
• workplace investigations
• hearings and appeals

Employers are expected to follow these principles whenever managing workplace conduct or performance issues.

Why the Code Is Important

Employment Tribunals consider whether employers have followed the ACAS Code when deciding cases.

If an employer fails to follow the Code, a tribunal can increase compensation awarded to an employee by up to 25%.

Equally, compensation can be reduced if an employee fails to follow the Code.

Best Practice for Employers

To reduce risk, employers should ensure they:

• conduct fair investigations
• invite employees to formal meetings in writing
• allow employees to be accompanied
• provide appeal opportunities
• keep clear documentation

Having clear policies and professional HR guidance helps employers follow the correct process.

Comment from Matthew Chilcott – Owner, Consensus HR

“The ACAS Code of Practice is one of the most important frameworks employers should follow when managing workplace issues. Many tribunal cases arise simply because the correct procedure was not followed.”

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