Disciplinary and grievance policy

The disciplinary and grievance procedures are the two policies every employer must have and the two a tribunal reads first: the written particulars must identify them, the Acas Code sets the standard, and a dismissal that skips a step the Code expects is unfair whatever the employee did. The policy has to set out an investigation, a hearing, a decision and an appeal that the employer's managers can run, a grievance procedure that handles complaints before they become claims, and the rights (to be accompanied, to see the evidence, to appeal) that apply at each stage. I draft the policy for the employer as part of the handbook and core policies for a fixed fee of £995, delivered in five working days.

Who this is for

Employers in England and Wales of any size who need procedures that managers can follow, and employers whose existing procedures were copied from somewhere larger.

What matters in a disciplinary and grievance policy

Why every employer needs one and where it must be identified

Section 3 of the Employment Rights Act 1996 requires the written particulars to specify the disciplinary rules, the disciplinary procedure and the person to whom the employee can apply if dissatisfied with a disciplinary decision or to seek redress of a grievance, which may be done by referring to a reasonably accessible document; the policy is that document, and it should be referred to in every contract, be available to all staff, and be the procedure the employer follows in fact, because a procedure that exists on paper and is not used is worse than one that is short and applied.

The Acas Code and the cost of ignoring it

The Acas Code of Practice on disciplinary and grievance procedures sets the minimum standard (an investigation, written notice of the allegations and the evidence, a meeting, a decision in writing, an appeal), and under section 207A of the Trade Union and Labour Relations (Consolidation) Act 1992 a tribunal can increase compensation by up to a quarter where the employer unreasonably fails to follow it and reduce it where the employee does; the policy should follow the Code step by step and should say so, because a tribunal measures the procedure against the Code and not against the employer's instincts.

The disciplinary procedure from investigation to appeal

The policy should set the stages: an investigation by someone other than the decision-maker where the business is large enough, with the employee told what is being investigated; a written invitation to a hearing stating the allegations, the possible outcomes and the evidence, with reasonable notice; a hearing at which the employee can respond, call evidence and be accompanied; a decision in writing with reasons and the sanction (a first warning, a final warning, dismissal with or without notice, or no action), the period a warning stays live, and the right of appeal to someone more senior or different; and the examples of misconduct and gross misconduct, stated as examples rather than an exhaustive list, with a separate capability procedure for performance.

The grievance procedure and the complaints it handles

The policy should encourage informal resolution first, set the formal procedure (a written grievance, a meeting without unreasonable delay with the right to be accompanied, a written decision and the right of appeal), say who hears a grievance about a manager (someone outside the line), how grievances during a disciplinary process are handled (usually heard alongside or paused for), how collective grievances and complaints between colleagues are handled, and how harassment complaints connect to the anti-harassment policy and the duty under the Worker Protection (Amendment of Equality Act 2010) Act 2023; an employee who has raised a grievance the employer ignored has a constructive dismissal claim in the making.

Suspension, companions and the rights that apply at each stage

The policy should state that suspension is on full pay, is not a disciplinary sanction, is used only where necessary (a serious allegation, a risk to evidence or people) and is kept under review, because an unnecessary suspension can breach the implied term of trust and confidence; it should state the right to be accompanied by a colleague or a trade union representative under section 10 of the Employment Relations Act 1999 at disciplinary and grievance hearings, the companion's role, the right to see the evidence and to call witnesses, the arrangements for recording hearings, and the adjustments for disabled employees under the Equality Act 2010; the rights are what a tribunal checks were given.

Keeping the procedure non-contractual and workable

The policy should state that it is not contractual, so that a departure from it is a factor in fairness rather than a breach of contract, should be written for the size of the business (a sole owner cannot provide three independent managers, and the policy should say what the business does instead), should be run by managers who have been shown how to run it, and should be reviewed as the Employment Rights Act 2025 changes to unfair dismissal and the statutory initial period of employment come in on the timetable the regulations set, because the lighter process for the early months will need its own procedure.

What it costs

Staff handbook and core policies, £995. Five working days.

Employment contract, £595. One template you can reuse for a grade of staff. Five working days.

Buying online forms the engagement on payment. The scope is what the employment contracts and handbooks page describes, you accept the Terms of Service at checkout, and I email you within four working hours to get started. If you would rather ask something first, email me.

What you get

• A bespoke contract drafted for how you employ people
• Restrictive covenants drafted at a scope a court will uphold
• Confidentiality and intellectual property provisions that put ownership where it belongs
• The statutory particulars, so the document does the job section 1 of the Employment Rights Act 1996 requires it to do
• Flexibility clauses where you genuinely need them, drafted to survive challenge
• Core policies: disciplinary, grievance, sickness absence, equal opportunities, data protection and, increasingly, AI use
• One round of amendments

What is not included

• Acting for employees
• Employment tribunal representation
• Payroll, pensions auto-enrolment and tax
• Immigration and sponsor licence work
• Day to day HR handling, disciplinaries, grievances and redundancy processes

Questions I am often asked

We are a small business and the owner handles everything. Can one person run the procedure?

The Code expects an investigation, a hearing and an appeal by different people where practicable, and a tribunal takes the size of the business into account. The policy says what the business does instead, which is better than pretending to have managers it lacks.

Do we have to let employees bring someone to a hearing?

The right to be accompanied by a colleague or a trade union representative at disciplinary and grievance hearings is statutory. The policy states the right and the companion's role.

An employee raised a grievance in the middle of their disciplinary. What now?

Hear it alongside or pause the disciplinary to deal with it, depending on whether it relates to the same facts. The policy sets the approach; ignoring the grievance is the mistake.

Related guidance and services

• Employment contracts and handbooks, £995, the service this page describes
• Consultancy and contractor agreements, £595
• Staff handbook for a business with five employees

This page is general guidance for businesses in England and Wales, not advice on your own circumstances. Last reviewed: October 2026. Email geoffrey@caesar.co.uk.