This guide is maintained as a current resource for September 2026 and covers only the laws of England and Wales. Information is for general guidance, not legal advice. Consult a qualified solicitor for advice specific to your situation.
A detailed guide explaining how workplace policies on discipline, grievance, probation and appeals influence termination disputes in England and Wales. Learn how policy compliance affects unfair dismissal claims, procedural fairness, tribunal evidence and compensation outcomes.
Employment policies are the written procedures and rules that govern workplace conduct and processes, including disciplinary procedures, grievance handling, appeals, probation, performance management, and termination. In termination disputes - such as unfair dismissal, wrongful dismissal, constructive dismissal, and discrimination claims - the content and application of these policies can have a significant impact on the legal analysis, evidence, and outcomes in an Employment Tribunal or court. Understanding how policies influence claims helps both employees and employers navigate disputes with clarity and minimise legal risk.
The Legal Significance of Employment Policies
Employment policies are not just internal guidance; they can affect how a tribunal assesses whether a dismissal was fair. The Employment Rights Act 1996 and related legal principles require employers to act reasonably when dismissing employees. Tribunal decisions often refer to whether the employer followed its own procedures as well as statutory standards of fairness and reasonableness. A failure to comply with internal policies - or accepted best practice standards - can support a claim that a dismissal was procedurally unfair.
Internal employment policies typically include:
- Disciplinary procedures, detailing how misconduct or performance issues are addressed;
- Grievance procedures, setting out how employee concerns should be raised and resolved;
- Appeal rights, explaining how employees can challenge decisions;
- Probationary period rules, governing early performance assessment;
- Capability or performance management policies, guiding performance reviews and improvement plans.
Well‑drafted, clear, and accessible policies help manage expectations and provide structure. Poorly drafted or inconsistently applied policies increase the risk of disputes.
Disciplinary and Grievance Policies and Fairness
Importance of Following the Acas Code of Practice
Although employment policies vary between organisations, tribunals expect procedures to reflect principles set out in the Acas Code of Practice on Disciplinary and Grievance Procedures. The Acas Code lays down procedural fairness principles - such as conducting investigations, informing employees of issues, allowing a response, and permitting representation and appeal - that tribunals use to judge a dismissal process.
Failing to follow your own written policies, or the principles in the Acas Code, can:
- Support a finding of procedural unfairness in an unfair dismissal claim;
- Lead to an increase in compensation of up to 25 per cent if the employer's failure to comply with the Acas Code is deemed unreasonable. Tribunals have upheld such uplifts where procedures were a “sham” or wholly deficient.
For example, where mis‑handling of disciplinary meetings or ignoring grievance steps prejudices an employee's ability to respond to allegations or raise concerns, the tribunal may conclude the process was unfair even if a substantive reason for dismissal existed.
Grievances Raised During Disciplinary Processes
Policies that govern the interaction between grievances and disciplinary processes are particularly important. Sometimes an employee raises a grievance during a disciplinary process, and if the employer incorrectly proceeds with the disciplinary without appropriately addressing the grievance, a tribunal may consider the entire process unfair. Best practice involves reviewing policies to determine whether to pause or adapt processes when grievances overlap with discipline.
Contractual Policies and Wrongful Dismissal Claims
Employment contracts sometimes incorporate policies by reference. For instance, a contract might state that a certain notice period or specific steps must be followed before termination. If an employer breaches those contractual terms, the employee may have a wrongful dismissal claim in addition to statutory claims. Key policy‑linked issues include:
- Probationary period rules - if a contract or policy governs extension or review processes and these aren't followed, it could constitute a contractual breach;
- Disciplinary policies referenced in contracts - failure to observe contractual procedures may support an argument that dismissal breached the contract.
Careful distinction is needed: failure to follow a non‑contractual policy (i.e. one not incorporated into the contract) usually does not give rise to contractual remedies, but still may inform the fairness assessment in a tribunal.
Impact on Constructive Dismissal
Policies can also influence constructive dismissal claims. Constructive dismissal arises where an employer's conduct - including breach of contractual or implied duties - leads an employee to resign. For example, if an employer consistently disregards its policies on performance management, fails to investigate complaints, or disregards grievance procedures, an employee might contend that such actions amount to a fundamental breach of contract that forced resignation.
Policy Compliance and Evidence
Tribunals often examine employment policies as part of the evidence in termination disputes. Whether or not policies are contractually binding, they shape expectations of “reasonable behaviour”. The employment tribunal will typically review:
- Whether the policies were in place and accessible to all staff;
- Whether managers were trained and understood the policies' application;
- Whether policy provisions were followed in practice;
- Whether any deviation was justified or arbitrary.
Documented fair procedures - following written policies and Acas guidance - can help employers demonstrate reasonableness and reduce the risk of an adverse finding. Conversely, inconsistent or undocumented application of policies strengthens employee claims about procedural unfairness.
Notice and Appeal Rights
As part of fairness, many policies grant employees rights of appeal against disciplinary decisions, including dismissal. Employers who disregard appeal procedures specified in their own policies risk undermining procedural fairness and face greater challenge in defending termination decisions at a tribunal. Policies that clearly explain appeal routes and timelines help both sides understand expectations and facilitate compliance with procedural norms.
Emerging Legal Context
Employment law is evolving. Under proposed reforms to the Employment Rights Act, qualifying periods for certain claims may shorten, or rights may expand, increasing the importance of robust policies to govern dismissals at earlier stages of service. This evolution underscores the need for organisations to keep policies up to date with statutory changes and best practice guidance to manage risk effectively.
Common Questions
Can poor policies alone make a dismissal unfair?
Poor policies do not automatically make a dismissal unfair, but failure to follow fair, clear, and consistently applied procedures - as reflected in those policies and the Acas Code - can contribute to a finding of procedural unfairness.
Do policies need to be contractual to matter?
Only policies expressly incorporated into the contract generally create contractual remedies. However, even non‑contractual policies influence how tribunals assess whether the employer acted reasonably.
Can an employer change policies mid‑dispute?
Employers should be cautious. Unilateral changes during an active dispute may be treated skeptically if they appear designed to justify disputed actions. Best practice is to communicate updates well in advance of action and apply changes consistently.
Key Takeaways
Employment policies - particularly those governing discipline, grievance, performance and termination procedures - play a central role in termination disputes in England and Wales. Tribunals use these policies, alongside statutory standards and the Acas Code of Practice, to assess whether dismissals were fair and whether procedures were reasonable. Failure to follow clear and fair policies can support claims of unfair dismissal or constructive dismissal and may lead to increased compensation awards. Well‑drafted, accessible and consistently applied policies help create predictable, legally compliant processes that protect both employees and employers in termination disputes.
