Workplace Mediation Key Part of New Draft ACAS Code of Practice

August 26, 2026

New Mediation Obligations For Employers In New Draft ACAS Code

A new Code of Conduct for employers in disciplinary and grievance proceedings has been prepared in draft by ACAS and is currently in consultation.

Having  20+ years’ experience as an employment law solicitor and now as a fully accredited independent mediator, I’ve seen first-hand the problems that occur in the workplace.

The current system for resolving workplace disputes is divisive, encourages picking sides and can end up with parties locked in expensive legal battles rather than getting issued solved.

For the first time, the new draft Code proposes that a mediation or facilitated conversation should be carried out by an independent accredited mediator or trained facilitator.

The proposed new Code is a revision of the 2015 Code and comes at a time when the employment tribunal system is creaking under the weight of claims it simply does not have capacity to effectively process.

As now, under the new Code the tribunal will be able to increase or decrease penalties by up to 25% where a  party unreasonably fails to follow the new Code i.e. if a party does not offer or accept an opportunity to resolve the issue by mediation. Both employers and employees and workers are therefore incentivised to follow the new Code and engage in mediation, which will apply in most cases.

The new Code will also apply to disputes with workers as well as employees.

It sets out new proactive principles of behaviour considered reasonable in the workplace and continues to take into account the size and resources of the employer.

The new Code places a much greater emphasis on proactively resolving concerns at work informally in the first instance including by mediation and facilitated conversations . These informal stages are to be called Concerns rather than moving too early to a formal grievance stage.

For the first time, the outcome of an initial informal approach can be to offer a mediation or facilitated conversation. There would still be an option in serious cases for employers to progress, by due process, to a disciplinary meeting i.e. in cases of potential gross misconduct.

This is what the draft Code says specifically about providing mediation and facilitated conversations to resolve disputes:

“Mediation and facilitated conversations

90. In some situations, it may be helpful to consider using mediation or a facilitated conversation to resolve a concern. This involves appointing an independent third party to help those involved resolve it.
91. The third party should be an accredited mediator or trained facilitator who is impartial and does not take sides. They could be someone external or a trained, independent individual within the organisation.
92. Mediation and facilitated conversations can be suggested by anyone at any stage in a process or afterwards. They are voluntary and confidential. Options for resolution proposed in these processes do not need to be accepted.
93. If it is agreed to use mediation or a facilitated conversation during a formal disciplinary or grievance procedure, the formal procedure should be paused.
94. Mediation and facilitated conversations can be especially beneficial in resolving problems associated with working relationships. They are not suitable for every situation, for example where:

• a factual decision is needed about statutory rights
• a resolution to the issue needs someone else to make a decision
• there is a substantial power imbalance that cannot be managed safely by the process, such as intimidation, coercion or abuse
• an individual cannot engage voluntarily or meaningfully in the process, even with reasonable support or adjustments, due to a mental health difficulty, a learning difficulty or a lack of mental capacity

95. These processes may not be available in every organisation, but it is good practice to offer them in appropriate cases where possible.”

For further information about employment and workplace mediation services, updating your processes  and the new draft  Code, don’t hesitate to get in touch joan@pettingillconsulting.co.uk   or visit mediation website https://www.pettingillconsulting.co.uk/