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.
Overview of the role of ACAS in UK dismissal disputes, including Early Conciliation, settlement agreements, tribunal processes, the ACAS Code of Practice, unfair dismissal claims, and its impact on Employment Tribunal proceedings in England and Wales.
The Advisory, Conciliation and Arbitration Service (ACAS Advisory, Conciliation and Arbitration Service Advisory, Conciliation and Arbitration Service) plays a central role in resolving employment disputes in England and Wales, particularly those involving dismissal. Its primary function is to help employers and employees resolve disputes without the need for a full hearing before an Employment Tribunal Employment Tribunal.
In dismissal cases-such as unfair dismissal, wrongful dismissal, redundancy disputes, or whistleblowing claims-ACAS acts as an independent body that facilitates early resolution, provides guidance, and supports settlement discussions.
Its involvement is a mandatory step in most tribunal claims under UK employment law.
What Is ACAS?
ACAS is a statutory public body established to improve workplace relations and reduce employment disputes. It provides:
- Free and impartial advice on employment rights
- Conciliation services for workplace disputes
- Codes of practice on disciplinary and grievance procedures
- Training and guidance for employers and employees
In dismissal disputes, its most important function is Early Conciliation, which must usually be completed before a tribunal claim can proceed.
Why ACAS Is Involved in Dismissal Disputes
Dismissal disputes often involve complex factual and legal issues, including:
- Whether a dismissal was fair or unfair
- Whether correct procedures were followed
- Whether compensation is owed
- Whether discrimination or whistleblowing protections apply
ACAS is involved to:
- Reduce the number of tribunal claims
- Encourage early settlement
- Avoid lengthy and costly legal proceedings
- Improve workplace relationships where possible
ACAS Early Conciliation Process
1. Notification of dispute
Before starting an Employment Tribunal Employment Tribunal claim, the claimant must notify ACAS. This pauses the limitation period (usually three months minus one day for dismissal claims).
2. Conciliation period
An ACAS conciliator is assigned to the case. Their role is to:
- Contact both parties
- Understand the issues in dispute
- Explore possible settlement options
- Facilitate communication between parties
The conciliator does not take sides or provide legal advice.
3. Settlement discussions
If both parties are willing, ACAS may help negotiate a legally binding settlement agreement known as a COT3 agreement. This typically includes:
- Compensation payments
- An agreed termination date
- Waiver of tribunal claims
- Confidentiality terms (where agreed)
4. Certificate of Early Conciliation
If settlement is not reached, ACAS issues a certificate allowing the claimant to proceed to the Employment Tribunal Employment Tribunal.
ACAS Role in Tribunal Proceedings
Although ACAS is most active before tribunal proceedings begin, it can still assist during the case.
Ongoing settlement support
ACAS may continue to facilitate settlement discussions even after a claim has been filed, up to the final hearing.
Reduction of litigation
Many cases settle shortly before hearing, often through ACAS-led negotiations.
ACAS Code of Practice and Dismissal Disputes
ACAS also publishes the ACAS Code of Practice on Disciplinary and Grievance Procedures, which is highly influential in dismissal disputes.
Employment tribunals consider whether employers have followed this Code when assessing fairness.
Key principles include:
- Carrying out a reasonable investigation
- Informing employees of allegations
- Holding a disciplinary hearing
- Allowing employees to be accompanied
- Offering a right of appeal
Failure to follow the Code does not automatically make a dismissal unfair, but tribunals can increase compensation by up to 25% where there is unreasonable non-compliance.
ACAS and Unfair Dismissal Claims
In unfair dismissal cases under the Employment Rights Act 1996 Employment Rights Act 1996, ACAS plays a procedural and settlement-focused role.
It does not decide:
- Whether dismissal was fair
- Whether compensation should be awarded
- Whether legal rights were breached
Instead, its role is to:
- Encourage resolution without tribunal proceedings
- Support negotiation between parties
- Provide structured conciliation services
ACAS and Wrongful Dismissal Claims
In wrongful dismissal disputes (based on breach of contract), ACAS may assist with:
- Negotiating unpaid notice pay
- Resolving contractual disputes
- Reaching settlement agreements
Because these claims are financial and contractual in nature, they are often suitable for early resolution through ACAS.
ACAS and Discrimination or Whistleblowing Dismissals
In cases involving the Equality Act 2010 Equality Act 2010 or whistleblowing protections:
ACAS helps facilitate settlement in claims involving:
- Victimisation or discrimination-related dismissal
- Automatically unfair dismissal due to whistleblowing
- Retaliation-based termination
These cases often carry higher compensation risks, making early settlement discussions more common.
Benefits of Using ACAS in Dismissal Disputes
1. Faster resolution
ACAS can resolve disputes in weeks rather than months or years.
2. Confidentiality
Discussions are private and not disclosed in tribunal proceedings.
3. Reduced costs
Settlement avoids legal costs associated with full tribunal hearings.
4. Flexibility
Parties can agree creative outcomes, including references or agreed exit terms.
5. Legally binding agreements
COT3 agreements are enforceable in law once signed.
Limitations of ACAS
ACAS cannot:
- Force settlement
- Act as a judge or decision-maker
- Provide legal representation
- Determine liability
Its role is facilitative, not adjudicative.
Time Limits and ACAS Involvement
Strict time limits apply to dismissal claims:
- Most claims must be brought within 3 months minus one day
- ACAS Early Conciliation pauses the limitation clock
- A certificate is required before submitting a tribunal claim
Missing time limits may prevent a claim from proceeding.
Common Misunderstandings
“ACAS decides the case”
Incorrect. ACAS does not determine outcomes.
“ACAS settlement means guilt”
Incorrect. Settlements are often made without admission of liability.
“You must accept ACAS proposals”
Incorrect. Both parties can refuse settlement.
Practical Role in Dismissal Strategy
ACAS is often a key early step in dismissal disputes. It is commonly used:
- Before issuing tribunal claims
- During employer–employee negotiations
- When exploring settlement of ongoing disputes
- As part of exit agreements
It is particularly important in high-risk claims such as unfair dismissal, discrimination, and whistleblowing cases.
Key Takeaways
ACAS Advisory, Conciliation and Arbitration Service Advisory, Conciliation and Arbitration Service plays a central role in UK dismissal disputes by facilitating early resolution, supporting settlement negotiations, and reducing the need for Employment Tribunal Employment Tribunal hearings. Through Early Conciliation, ACAS helps parties explore settlement before formal proceedings begin. It also provides the influential ACAS Code of Practice, which tribunals use when assessing dismissal fairness. While ACAS does not decide cases, it is a critical part of the dismissal dispute process under the Employment Rights Act 1996 Employment Rights Act 1996.
