Sooner or later, every employer has to deal with a difficult conversation. A worker keeps turning up late. A complaint is raised about bullying. Someone fails a drugs test. A piece of equipment goes missing.
How you handle these situations matters. Get it right and most issues can be resolved quickly and fairly. Get it wrong and you could be facing a tribunal claim that costs tens of thousands of pounds.
The key reference point is the ACAS Code of Practice on Disciplinary and Grievance Procedures. Every UK employer is expected to follow it.
What Is the ACAS Code?
ACAS is the Advisory, Conciliation and Arbitration Service. It is an independent public body that provides employment law guidance.
The ACAS Code sets out the minimum standard employers should follow when handling:
- Disciplinary issues (conduct or performance)
- Grievances (concerns raised by employees)
If an employer fails to follow the Code, an employment tribunal can increase a successful claimant's compensation by up to 25 per cent. If the employee fails to follow it, their award can be reduced by up to 25 per cent.
In short, the Code matters.
When Does the Code Apply?
The Code applies whenever:
- You have concerns about an employee's conduct or performance
- An employee raises a formal complaint about work, their treatment or their colleagues
It does not apply to redundancy or the non-renewal of fixed-term contracts, although other rules apply there.
The Five Key Principles
The Code is built around five principles. Stick to these and you will rarely go far wrong.
1. Raise and Deal With Issues Promptly
Do not let issues drag on for weeks or months. Address them as soon as they arise.
2. Act Consistently
Treat similar situations in a similar way. If you fire one worker for using their phone on a roof, you cannot ignore the same behaviour from another.
3. Carry Out a Reasonable Investigation
Before taking action, find out the facts. Speak to witnesses. Look at any CCTV, records or documents. Keep notes.
4. Inform the Employee
Let the employee know in writing what the concern is, what evidence there is and what the possible outcomes could be.
5. Allow the Employee to Be Accompanied
At any formal disciplinary or grievance meeting, the employee has the right to be accompanied by a colleague or a trade union representative.
The Standard Disciplinary Process
A standard ACAS-aligned disciplinary process looks like this:
1. Informal Chat
For minor issues, a quiet word may be enough. Keep a brief note.
2. Investigation
If the issue is more serious, carry out a fair investigation. Where possible, the investigator should be different from the person who will make the final decision.
3. Invitation Letter
Write to the employee, explaining:
- The allegations
- The evidence
- The date, time and place of the meeting
- Their right to be accompanied
- The possible outcomes (including dismissal, if applicable)
4. Disciplinary Meeting
Hold the meeting. Give the employee a full chance to respond. Take notes.
5. Decision
Make a decision based on the evidence. Common outcomes include:
- No action
- A first written warning
- A final written warning
- Dismissal (with notice or, in cases of gross misconduct, without)
6. Outcome Letter
Write to the employee with the decision, the reasons and any sanction. Give them the right to appeal.
7. Appeal
If they appeal, the appeal should ideally be heard by someone more senior who was not involved in the original decision.
The Standard Grievance Process
The grievance process mirrors the disciplinary one:
- Employee raises the grievance in writing
- Employer arranges a meeting promptly
- Employee has the right to be accompanied
- Investigation takes place if needed
- Decision is communicated in writing
- Employee has the right to appeal
Gross Misconduct
Some behaviour is so serious it can justify summary dismissal (dismissal without notice).
Examples in a trade business might include:
- Theft from the company or a client
- Fighting on site
- Being under the influence of drink or drugs on site
- Serious breaches of health and safety
- Deliberate damage to plant or equipment
Even in cases of gross misconduct, the ACAS Code still applies. You must still investigate, invite the employee to a meeting and give them the chance to respond.
Common Mistakes
- Sacking someone on the spot in a moment of anger
- Skipping the investigation step
- Failing to put allegations in writing
- Denying the right to be accompanied
- Not offering a right of appeal
- Treating different staff inconsistently
- Letting personal feelings cloud the decision
Any of these can turn a fair dismissal into an unfair one.
Tips for Small Trade Businesses
Have a Written Procedure
Your disciplinary and grievance procedures should be in the employee handbook. Make sure every employee has access to them.
Train Your Managers
Foremen and site managers are often the first to deal with issues. A short training session on the basics of the ACAS Code will save you a lot of trouble.
Keep Records
Write everything down. Notes of meetings, copies of letters, witness statements. If a claim ever lands at a tribunal, your records are your defence.
Get Advice Early
For anything that might lead to dismissal, take advice before acting. ACAS offers a free helpline. Many insurance policies include employment law support.
Final Thoughts
Disciplinary and grievance issues are part of running any business. They are not pleasant, but they are manageable if you have a clear, ACAS-aligned process in place.
For small UK trade employers, the key is to plan for these situations before they happen. A clear written procedure, trained managers and good record keeping will protect your business and give your staff confidence that they will be treated fairly.
