Employee Disciplinary Process — Complete Employer Guide

Why getting this right matters more than ever

From 1 January 2027, the unfair dismissal qualifying period drops from 2 years to 6 months under the Employment Rights Act 2025. This means that from that date, an employee dismissed in their seventh month of employment can bring an unfair dismissal claim. Every disciplinary decision must be procedurally fair from the earliest stage of employment.

The ACAS Code of Practice

The ACAS Code of Practice on Disciplinary and Grievance Procedures sets out the steps employers should follow. Failure to follow the Code does not make a dismissal automatically unfair, but an employment tribunal can uplift any compensation award by up to 25% if the employer unreasonably fails to comply.

The key steps:

• 1. Investigate — carry out a reasonable investigation before any disciplinary hearing
• 2. Inform in writing — write to the employee setting out the allegations and inviting them to a disciplinary hearing
• 3. Hold the hearing — give the employee reasonable notice, allow them to be accompanied
• 4. Decide and notify — inform the employee of the outcome in writing
• 5. Right of appeal — always offer the employee the right to appeal

The disciplinary sanctions

Right to be accompanied

Any employee has the right to be accompanied at a disciplinary hearing by a work colleague or trade union representative. They do not have the right to bring a legal representative unless your own procedures permit it. Refusing a reasonable request to be accompanied lets the employee claim up to two weeks’ pay, and makes any later dismissal much harder to defend as fair.

Gross misconduct

Gross misconduct justifies summary dismissal without notice. Common examples include theft, fraud, physical violence, serious breach of health and safety, and gross insubordination. Your disciplinary policy should define what constitutes gross misconduct in your workplace. Always investigate before dismissing — even gross misconduct allegations.