Managing a fair disciplinary procedure

Rising Stakes in UK Disciplinary Procedures

The UK government enacted the Employment Rights Act 2025 in late 2025, marking the most significant overhaul of individual employment rights in decades. While many provisions phase in over 2026 and 2027, the centrepiece for disciplinary matters is the reduction of the unfair dismissal qualifying period from two years to six months, effective 1 January 2027. This means employees with just six months' service can claim unfair dismissal, exposing employers to tribunal claims much earlier in the employment relationship.

Failure to follow fair procedures carries concrete consequences. Employment tribunals already consider compliance with the Acas Code of Practice on disciplinary and grievance procedures when assessing cases. Unreasonable departures from the Code can increase compensation awards by up to 25%. With the impending removal of the unfair dismissal compensation cap (currently the lower of a year's pay or around £118,000) also set for 2027, the financial exposure becomes unlimited in successful claims.

Recent years have seen elevated employment tribunal volumes, partly from post-pandemic workplace tensions and social media-related misconduct cases. Tribunals increasingly examine whether employers balanced business needs against employee rights, particularly in investigations, suspensions, and hearings. The Code emphasises natural justice principles: impartial investigations, the right to be accompanied, and fair appeals. Deviations—such as rushing processes or inadequate evidence gathering—often prove decisive in rulings.

A less-discussed trade-off lies in the push for informal resolutions. The Acas framework encourages addressing issues early and informally to preserve relationships, yet if matters escalate, tribunals retrospectively demand robust formal steps. Employers thus navigate a narrow path: acting decisively without appearing precipitous, especially as broader reforms strengthen worker protections and extend tribunal time limits to six months.

These developments coincide with Acas's ongoing role in promoting best practice through guidance and early conciliation, extended to 12 weeks from December 2025 to ease tribunal pressures. Yet the core risk remains: procedural lapses that once affected longer-serving employees now threaten a wider workforce, amplifying costs, management time, and potential reputational damage from publicised cases.