ACAS - Advisory, Conciliation and Arbitration Service (UK)
A UK government-funded independent body that provides free and impartial advice on workplace relations, helps resolve employment disputes through early conciliation, and offers training, guidance, and codes of practice for employers and employees.
What Is ACAS?
Key Takeaways
- ✓ACAS (Advisory, Conciliation and Arbitration Service) is an independent public body funded by the UK government that exists to improve workplace relations and resolve employment disputes.
- ✓Since 2014, employees must contact ACAS for early conciliation before they can file a claim at an employment tribunal. This is mandatory, not optional.
- ✓ACAS provides three core services: free helpline advice (630K+ calls per year), early conciliation for employment disputes, and workplace training and guidance.
- ✓The ACAS Code of Practice on disciplinary and grievance procedures is the benchmark for fair processes. Tribunals consider it when assessing unfair dismissal claims.
- ✓ACAS is free for both parties. The conciliation service doesn't charge employers or employees, and the helpline is available to anyone with a workplace question.
ACAS is the UK's workplace dispute prevention and resolution service. Think of it as the first line of defense before employment disputes reach a tribunal. It advises, it conciliates, it trains, and it sets the standards that employers are expected to follow. Every year, over 630,000 people call the ACAS helpline with questions about employment rights, disciplinary procedures, redundancy, discrimination, and every other workplace issue imaginable. The service is free, impartial, and available to both employers and employees. Since 2014, ACAS has played a mandatory gatekeeping role in the employment tribunal system. Before filing a tribunal claim, every prospective claimant must contact ACAS for early conciliation. ACAS then has a set period (usually one month, extendable to six weeks) to try to broker a settlement. If conciliation fails, ACAS issues a certificate that allows the claim to proceed to tribunal. This system filters out a significant volume of cases. About 73% of early conciliation cases either settle or don't proceed to tribunal, saving both parties the time, cost, and stress of formal legal proceedings.
ACAS Services Overview
ACAS provides multiple services aimed at preventing disputes, resolving them when they arise, and improving workplace practices.
| Service | What It Does | Who It's For | Cost |
|---|---|---|---|
| Helpline | Free, impartial advice on employment rights and workplace issues | Employers, employees, HR professionals, and representatives | Free |
| Early conciliation | Mandatory pre-tribunal dispute resolution service | Prospective tribunal claimants and respondent employers | Free |
| Collective conciliation | Helps resolve disputes between employers and trade unions | Employers and recognized trade unions in dispute | Free |
| Mediation | Facilitates resolution of workplace conflicts | Employers and employees in conflict (not yet at tribunal stage) | Charged service |
| Training and workshops | Practical training on HR topics (discipline, grievance, absence management) | Employers, HR teams, managers, employee representatives | Charged service |
| Arbitration scheme | Alternative to employment tribunal for unfair dismissal and flexible working claims | Parties who agree to binding arbitration instead of tribunal | Free |
ACAS Early Conciliation: How It Works
Early conciliation is the most significant ACAS function for HR teams. Since 2014, it's the mandatory gateway to the employment tribunal system.
Starting the process
The prospective claimant contacts ACAS (online or by phone) before filing a tribunal claim. ACAS records the details and issues an early conciliation notification number. The claimant doesn't need to have exhausted internal grievance procedures first, though it's better if they have. ACAS then contacts the employer (the prospective respondent) to explain the claim and ask if they're willing to participate in conciliation.
The conciliation period
ACAS has one calendar month from the date of the early conciliation notification to try to facilitate a settlement. This can be extended by up to two weeks (making the maximum period six weeks) if both parties agree and ACAS believes a settlement is achievable. During this period, an ACAS conciliation officer speaks to both parties separately to explore whether a resolution is possible. They don't meet both parties together (unlike mediation).
Possible outcomes
Settlement: The parties agree on terms (financial compensation, a reference, an apology, reinstatement, etc.) recorded in a COT3 agreement. This is binding and enforceable. The tribunal claim doesn't proceed. No settlement but claimant proceeds: ACAS issues an early conciliation certificate with a unique reference number. The claimant needs this number to file their tribunal claim. No settlement and claimant doesn't proceed: The claim simply doesn't get filed. This happens in roughly 40% of cases where parties don't settle through conciliation.
The COT3 agreement
A COT3 is a legally binding settlement reached through ACAS conciliation. Unlike a private settlement agreement (formerly called a compromise agreement), a COT3 doesn't require the employee to have received independent legal advice. ACAS's involvement provides the procedural safeguard. COT3 agreements can cover any terms the parties agree to: financial payments, agreed references, confidentiality provisions, and non-derogatory clauses. Payments under a COT3 can include a tax-free element (up to 30,000 GBP for termination payments under current HMRC rules).
The ACAS Code of Practice on Disciplinary and Grievance Procedures
The ACAS Code of Practice is the gold standard for handling disciplinary and grievance matters in the UK. It's not legally binding, but tribunals are required to consider it.
What the code requires
The code sets out the basic principles of fairness in disciplinary and grievance situations. For disciplinary matters: investigate the allegations, inform the employee of the issue in writing, hold a meeting to discuss it, allow the employee to be accompanied by a colleague or union representative, make a decision and communicate it in writing, and provide the right to appeal. For grievances: the employee raises the matter in writing, the employer arranges a meeting, the employer provides a written decision, and the employee has the right to appeal.
The 25% adjustment
If a tribunal finds that either the employer or employee unreasonably failed to follow the ACAS Code, it can increase or decrease any compensation award by up to 25%. This is a significant financial incentive to follow the code. An employer who dismisses someone without holding a disciplinary meeting faces not just an unfair dismissal finding but a potential 25% uplift on the compensation award. For a claim worth 20,000 GBP, that's an extra 5,000 GBP.
The ACAS Helpline: A Resource for HR Teams
The ACAS helpline isn't just for employees with complaints. It's a valuable resource for HR professionals and business owners who need quick guidance on employment law questions.
- Available Monday to Friday, 8am to 6pm. The helpline is staffed by trained advisers who can answer questions on any aspect of employment law and workplace relations.
- Common employer questions include: how to handle a disciplinary situation, what notice period applies, whether a proposed dismissal is legally safe, how to manage a grievance, and what obligations apply in a redundancy.
- Advisers can explain your legal obligations, outline best practice, and point you to relevant ACAS guidance documents. They can't give legal advice (they won't say 'you should do X'), but they'll explain what the law requires and what good practice looks like.
- The helpline handles over 630,000 calls per year. Wait times vary but are generally manageable. For non-urgent questions, ACAS also provides extensive online guidance covering most common workplace situations.
- Use the helpline as a sanity check before making significant employment decisions. A 15-minute call can prevent a costly tribunal claim.
ACAS Conciliation vs Employment Tribunal
Understanding the relationship between ACAS and the employment tribunal system helps HR teams make better decisions about dispute resolution strategy.
| Factor | ACAS Early Conciliation | Employment Tribunal |
|---|---|---|
| Cost | Free for both parties | No fee for claimant (since 2017); respondent pays own legal costs |
| Formality | Informal, telephone-based discussions | Formal quasi-judicial hearings with evidence and cross-examination |
| Duration | 1-6 weeks | 6-12 months (sometimes longer) |
| Outcome | Voluntary settlement (COT3) | Binding judgment with written reasons |
| Public record | Confidential | Public (judgments published online) |
| Legal representation | Not needed | Strongly recommended for respondent employers |
| Appeal | No appeal (settlement is final) | Appeal to Employment Appeal Tribunal on points of law |
| Compensation limits | No cap (parties agree the amount) | Capped for unfair dismissal (currently ~105,000 GBP); uncapped for discrimination |
ACAS Statistics [2026]
Key data on ACAS's role in the UK employment dispute resolution system.
Frequently Asked Questions
Do I have to use ACAS before going to an employment tribunal?
Does the ACAS Code of Practice have legal force?
Can ACAS force my employer to settle?
Is what I tell ACAS confidential?
What's the difference between ACAS conciliation and mediation?
Written by Adithyan RK