Disciplinary Procedure (Small Organisations) Template for UK Businesses
A disciplinary procedure sets out the process your organisation follows when dealing with employee misconduct or poor performance. The ACAS Code of Practice on Disciplinary and Grievance Procedures is not legally binding, but employment tribunals are required to take it into account under section 207 of the Trade Union and Labour Relations (Consolidation) Act 1992. Failure to follow the Code can result in a 25% uplift in compensation awarded against you. For businesses with fewer than 50 employees, a simplified procedure that follows the Code's core principles is usually appropriate.
Who Needs This Policy?
Every UK employer needs a disciplinary procedure. While there is no statute that explicitly mandates one, the ACAS Code of Practice applies to all employers and employees, and tribunals will expect to see a fair process. Under section 1 of the Employment Rights Act 1996, employers must provide employees with a written statement of their disciplinary rules and procedure (or refer them to a reasonably accessible document). This is a day-one right since April 2020.
What's Covered
This disciplinary procedure (small organisations) template covers 12 key sections:
Purpose
[your details] is committed to treating all employees fairly and consistently. This procedure sets out the steps we will...
Scope
This procedure applies to all employees of [your details] who have completed their probationary period. During the proba...
Informal Action
Minor issues of conduct or performance should normally be dealt with informally first. Your line manager will speak to y...
Procedures -- Step 1: Investigation
Before any formal disciplinary action, [your details] will carry out a reasonable investigation to establish the facts. ...
Procedures -- Step 2: Notification
If the investigation reveals a case to answer, [your details] will write to the employee with: - A clear description of...
Procedures -- Step 3: Disciplinary Hearing
The hearing will be chaired by a manager with authority to make the disciplinary decision. At the hearing: - The allega...
Procedures -- Step 4: Decision and Outcomes
After the hearing, the decision-maker will consider all the evidence on the balance of probabilities and decide on the a...
Gross Misconduct
Gross misconduct is behaviour so serious that it fundamentally breaches the trust and confidence between employer and em...
Procedures -- Step 5: Appeal
Any employee who receives a disciplinary sanction has the right to appeal. To appeal, write to [your details] within [yo...
Roles and Responsibilities
are responsible for: - Meeting the standards of conduct and performance expected by [your details] - Cooperating with i...
Related Policies
This procedure should be read alongside: - Grievance Procedure - Anti-Harassment and Bullying Policy - Health and Safet...
Review
This procedure will be reviewed annually, or sooner if there are changes to the ACAS Code of Practice or relevant legisl...
Legal Framework
This policy template is grounded in the following UK legislation and guidance:
- Employment Rights Act 1996, s.3 (written particulars must reference disciplinary procedure), Part X (unfair dismissal)
- ACAS Code of Practice on Disciplinary and Grievance Procedures (statutory code under TULR(C)A 1992, s.207)
- Employment Relations Act 1999, s.10 (right to be accompanied)
- Employment Rights Act 2025 (unfair dismissal qualifying period reducing to 6 months from January 2027, compensation caps removed)
How Complaiance Helps
Our disciplinary procedure (small organisations) goes beyond a generic template:
- Follows the ACAS Code of Practice step-by-step to protect you from the 25% compensation uplift
- Simplified format designed for small businesses without dedicated HR departments
- Clear examples of misconduct and gross misconduct tailored to your industry
- Built-in right to be accompanied provisions under section 10 of the Employment Relations Act 1999
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Get Started FreeFrequently Asked Questions
Do small businesses need a disciplinary procedure?
Yes. Under section 1 of the Employment Rights Act 1996, all employers must provide employees with written particulars of employment that include details of any disciplinary rules and procedure. Since April 2020, this is a day-one right. Additionally, the ACAS Code of Practice on Disciplinary and Grievance Procedures applies to all employers, and failure to follow it can lead to a 25% uplift in tribunal compensation.
What is the ACAS Code of Practice on disciplinary procedures?
The ACAS Code of Practice on Disciplinary and Grievance Procedures sets out the minimum steps employers should follow when dealing with misconduct or poor performance: investigate the matter, notify the employee of the problem in writing, hold a meeting, allow the employee to be accompanied, make a decision, and offer a right of appeal. While not legally binding, tribunals must take it into account under section 207 of TULRCA 1992.
Can an employee be dismissed without a disciplinary procedure?
Dismissing an employee without following a fair procedure is likely to be found unfair by an employment tribunal, even if the underlying reason for dismissal was valid. The only exception is where the employee has less than 2 years' continuous service (the qualifying period for ordinary unfair dismissal). However, employees can bring claims from day one for automatically unfair dismissal (e.g., whistleblowing, pregnancy) or discrimination, where procedural fairness still matters.