What is a Section 278 Agreement?

A Section 278 Agreement is a legal agreement between a developer and a highway authority to carry out highway works.

The Biggest Shake Up Of The Acas Code In 17 Years

Acas has published a draft new Code of Practice on Disciplinary and Grievance Procedures for consultation. It is the first full rewrite since 2009 and, although nothing is final yet, there are some significant changes for HR.

Here are the headlines:

Informal resolution moves into the Code

Currently, the encouragement to resolve issues informally sits outside the statutory Code itself. The draft changes that, with dedicated sections on employers and workers trying informal resolution before formal procedures begin.

That could give informal resolution greater legal significance when tribunals consider compliance with the Code and any potential uplift to compensation.

There is a practical change too. A disciplinary invitation would need to explain what informal steps have already been taken, or why none were appropriate. Workers raising formal grievances would face a similar expectation.

Suspension gets a tougher test

The draft makes clear that suspension should only be used where necessary and in limited circumstances. That reflects the direction of existing case law but puts the message much more firmly into the Code: suspension should not be the automatic response to an allegation.

More emphasis on equality, training and mediation

There are new standalone sections covering reasonable adjustments, manager training, and mediation/facilitated conversations. The latter is particularly notable: mediation is absent from the current Code, while the draft expressly contemplates pausing formal procedures to allow it to take place.

The draft also replaces “employee” with “worker” in most places, potentially broadening the Code’s reach, although the statutory 25% uplift remains available only in respect of employees.

But what about AI?

One notable omission is AI. The draft Code is silent on its use in grievance situations, despite AI-generated grievances and responses becoming a very real issue for HR teams.

Acas has not ignored the issue altogether. The consultation specifically asks whether the non-statutory guidance accompanying the Code should address the use of AI in disciplinary and grievance procedures. That is an area where HR practitioners may particularly want to have their say.

What should HR do now?

Don’t rewrite your policies yet. But start identifying where changes may eventually be needed, particularly around informal resolution, disciplinary and grievance templates, suspension, and manager training.

The consultation closes on 23 September 2026.

About Jon Dunkley

Jon Dunkley is a Partner at Wollens and heads up the firm’s Regulatory Department. Based at our North Devon office, Jon is a highly experienced solicitor with a broad commercial and regulatory practice, supporting businesses, professionals and senior employees across a wide range of legal issues.

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