HR Advice Hub

What Happens If An Employee Contacts ACAS?

An unexpected call or email from ACAS can understandably make employers feel anxious.

You may immediately wonder whether you're about to face an Employment Tribunal claim, whether you've done something wrong, or whether you now have to negotiate a settlement. Fortunately, it's rarely that simple.

Employees contact ACAS for a wide variety of reasons. Some simply want independent advice. Others begin the Early Conciliation process because they're considering making an Employment Tribunal claim. Many disputes are resolved before they ever reach a tribunal.

Understanding what happens when an employee contacts ACAS can help you respond calmly, protect your business and make informed decisions about the next steps. This article explains the ACAS process from an employer's perspective, including Early Conciliation, what ACAS will ask, whether you have to participate, what happens if no agreement is reached and how to minimise legal risk.

What Is ACAS?

The Advisory, Conciliation and Arbitration Service (ACAS) is an independent public body that provides free and impartial advice on workplace rights, employment law and resolving workplace disputes. ACAS does not represent either employers or employees.

Its role is to help both parties understand their options and, where appropriate, resolve disputes before they become formal legal proceedings. Importantly, ACAS does not decide who is right or wrong and cannot make legally binding decisions about workplace disputes.

Why Would An Employee Contact ACAS?

Employees contact ACAS for many different reasons. They may:

• want independent advice about their employment rights

• believe they have been unfairly dismissed

• have concerns about discrimination

• disagree with disciplinary action

• be unhappy with redundancy or redundancy pay

• have an unresolved grievance

• believe wages or holiday pay have been withheld

• be considering resigning and claiming constructive dismissal

• simply want to understand their options.

One of the biggest misconceptions is that contacting ACAS automatically means legal action is imminent. In reality, many employees never go on to make an Employment Tribunal claim. Sometimes they simply want reassurance or information before deciding what to do next.

What Is ACAS Early Conciliation?

For most Employment Tribunal claims, an employee must notify ACAS before submitting a claim to the Employment Tribunal. This process is known as Early Conciliation.

The purpose is to give both parties an opportunity to resolve the dispute without the time, stress and expense of tribunal proceedings. The process is intended to encourage early discussion and practical solutions wherever possible. However, Early Conciliation does not mean either party has to settle.

What Happens After An Employee Contacts ACAS?

The process usually follows these stages:

Step 1 – The Employee Contacts ACAS: The employee submits basic details about themselves, their employer and the nature of the dispute. At this stage, ACAS does not investigate whether the complaint is justified.

Step 2 – An ACAS Conciliator Is Assigned: An impartial conciliator reviews the notification and contacts the employee to understand the situation and establish whether they wish to explore settlement.

Step 3 – ACAS Contacts The Employer: If the employee wishes to proceed with Early Conciliation, ACAS will usually contact the employer by telephone or email. This is often the first point at which employers become aware that the employee has contacted ACAS.

Receiving this call can be unsettling, but it is important to remember that it is not a finding against your organisation. It is simply an invitation to explore whether the dispute can be resolved.

Step 4 – Conciliation Discussions: If both parties agree, the conciliator acts as an independent intermediary. They may speak separately with both sides, relay proposals and explore possible settlement options. The conciliator does not offer legal advice, determine liability or tell either party what outcome they should accept.

Step 5 – The Outcome: There are usually two possible outcomes.

Settlement is reached: If both parties reach agreement, ACAS prepares a legally binding document called a COT3 agreement. Once signed, this normally prevents the employee from bringing an Employment Tribunal claim about the matters covered by the agreement.

No agreement is reached: If settlement is not achieved, ACAS issues an Early Conciliation Certificate. The employee can then decide whether to submit an Employment Tribunal claim, provided they remain within the applicable legal time limits.

What Is A COT3 Agreement?

A COT3 is the legally binding agreement used by ACAS to record the terms of a settlement reached during Early Conciliation. It commonly includes matters such as:

• compensation

• notice payments

• confidentiality provisions

• agreed references

• withdrawal of legal claims.

Unlike a Settlement Agreement, a COT3 does not normally require the employee to obtain independent legal advice before it becomes binding. Because of this, it is often a quicker and more straightforward way of resolving workplace disputes.

What Will ACAS Ask An Employer?

When ACAS contacts you, the conciliator will normally ask straightforward questions such as:

• Are you willing to participate in Early Conciliation?

• Are you the correct person to deal with the matter?

• Have you had an opportunity to consider the employee's concerns?

• Would you like time to obtain HR or legal advice?

• Are you prepared to discuss possible settlement?

They are not interviewing you or investigating your organisation. Their role is simply to establish whether there is any prospect of resolving the dispute.

Do Employers Have To Take Part?

No. Employers are not legally obliged to negotiate or agree a settlement. You are free to:

• participate fully

• decline settlement discussions

• explain that you believe no settlement is appropriate.

However, many employers choose to engage because it provides an opportunity to understand the employee's concerns and potentially avoid lengthy tribunal proceedings.

Can ACAS Force An Employer To Settle?

No. ACAS cannot:

• force either party to negotiate

• order compensation

• decide who is legally correct

• investigate the evidence

• require an apology

• make findings of fact.

Any settlement must be agreed voluntarily by both parties.

Does Contacting ACAS Mean The Employee Will Go To Tribunal?

No. Many disputes end during Early Conciliation. Others conclude because:

• the employee decides not to continue

• both parties reach agreement

• the employee receives advice that changes their expectations

• the employer resolves the issue internally.

Only a proportion of Early Conciliation cases ultimately proceed to an Employment Tribunal.

Can An Employee Contact ACAS Without Telling Their Employer?

Yes. Many employees contact ACAS for confidential advice before making any formal decision. If they simply seek advice, the employer may never know. If they begin Early Conciliation, ACAS will usually contact the employer.

What If The Employee Never Raised A Grievance?

This is more common than many employers expect. Although it is usually good practice for employees to raise concerns internally first, there is generally no legal requirement for them to do so before contacting ACAS.

Nevertheless, internal procedures often provide the quickest opportunity to resolve workplace issues before they escalate. Employers should still carefully review the underlying concerns rather than focusing solely on the fact that no grievance was raised.

What Should Employers Do When ACAS Gets In Touch?

Receiving an ACAS notification is rarely the time for knee-jerk reactions. Instead, take a structured and objective approach.

Review all relevant documents and consider everything relevant to the dispute, including:

• contracts of employment

• disciplinary records

• grievance correspondence

• investigation reports

• witness statements

• attendance records

• meeting notes

• emails and written correspondence

• relevant HR policies

• previous decisions involving similar circumstances.

Having a complete picture will help you assess the situation objectively.

Consider whether the correct process was followed and ask yourself:

• Was the investigation reasonable?

• Was the employee given the opportunity to respond?

• Were your policies followed?

• Was the outcome consistent with previous cases?

• Is there sufficient evidence to justify your decisions?

These questions are often just as important as the underlying facts themselves.

Think commercially - not every settlement means an employer has done something wrong. Sometimes the legal costs, management time and uncertainty involved in defending a claim outweigh the value of reaching an early agreement. Conversely, if you've followed a fair process and have strong evidence, defending the claim may be the right decision. Each case should be assessed on its own merits.

Obtaining HR support early is one of the biggest advantages you can have, so that you can make informed decisions before positions become entrenched. An experienced HR consultant can help you assess risk, review documentation, prepare responses and decide whether settlement discussions are appropriate.

Common Mistakes Employers Make After ACAS Gets In Touch

One thing we regularly see is employers becoming anxious simply because ACAS has made contact. In reality, this is often the first opportunity to resolve matters before they become more formal. Some common mistakes include:

• assuming they have already lost

• ignoring the conciliator completely

• responding emotionally rather than objectively

• altering documents after the event

• deleting emails or records

• contacting the employee inappropriately

• assuming settlement means admitting liability

• failing to obtain HR advice before making important decisions.

Taking a calm, evidence-based approach is almost always the better option.

Can ACAS Make An Employer Pay Compensation?

No. Only an Employment Tribunal has the power to determine legal liability and, where appropriate, award compensation. ACAS can help parties negotiate an agreed financial settlement, but it cannot impose one.

Preventing Workplace Disputes From Reaching ACAS

While not every dispute can be avoided, many can be resolved long before ACAS becomes involved. Good employers typically:

• train managers effectively

• deal with concerns promptly

• encourage informal resolution where appropriate

• carry out fair investigations

• follow disciplinary and grievance procedures consistently

• document decisions carefully

• seek HR advice before problems escalate.

Addressing issues early often leads to better outcomes for everyone involved.

Need HR Support?

Being contacted by ACAS doesn't necessarily mean your business has done anything wrong, but it is a sign that a workplace issue has become more formal and deserves careful consideration.

At BloomHR, we support employers with every stage of employee relations, from reviewing disciplinary and grievance procedures to assessing legal and practical risks, responding to ACAS, and helping managers navigate difficult conversations with confidence.

Whether you simply need reassurance that you're taking the right approach or ongoing support throughout the process, we're here to provide practical, commercially focused HR advice that protects both your people and your business. Contact us for more information.