ACAS for startups: The HR framework you need
You’ve got your product, your pitch, maybe even your first few hires. Things are picking up. But now comes the bit most founders avoid thinking about: HR.
HR goes far beyond handing out contracts and sorting payroll. The moment you hire someone, you’ve got a whole bunch of legal responsibilities to consider. That’s where the Advisory, Conciliation and Arbitration Service (ACAS) comes in.
ACAS is the UK’s independent authority on employment relations and workplace rights. It gives free advice on how to follow employment law, handle workplace conflict, and resolve disputes before they blow up.
If you’re building a business, especially for the first time, you're in the right place. In this article, we walk you through what ACAS actually does and why it matters. We also share how you can use it to build a fair, legal, and well-run team from the get-go.
What is ACAS?
ACAS stands for the Advisory, Conciliation and Arbitration Service. It’s an independent public body that's set up by and receives funding from the government to help employers and workers understand their rights at work.
In plain English? It means if you’re running a business in the UK, even if you’ve only got one employee, ACAS is the place to go for free advice on how to follow the law and run things fairly. They’re not there to catch you out. They’re there to help you get things right.
You’ll find clear, easy-to-understand guides on topics, such as:
- Writing proper contracts
- Dealing with staff complaints
- Sorting out holiday pay
- Resolving workplace problems before they get out of hand
If something goes wrong (like a claim or dispute), ACAS can step in to help both sides talk it through. That’s called providing conciliation. And it's one of their core services. If things escalate, they can help with arbitration too. In other words, they’re a proper arbitration service as well.
ACAS also plays a big role in shaping employment relations in the UK. So, even if you're just starting out, it's worth knowing what they recommend. What they say is taken seriously. By employees. By lawyers. And by employment tribunals.
For small businesses and startups, ACAS is the HR safety net you didn’t know you needed. And the best part? Their assistance won’t cost you a penny.
Why following ACAS guidance matters for startups
When you’re in the early days of running a business, it’s easy to put HR in the 'deal with later' pile. But ignoring it won’t make the legal stuff go away. And if you get it wrong, it could cost you time, stress, or straight-up money.
That’s why small businesses should take ACAS seriously right from day one. Their impartial advice is based on UK law and what actually works in real workplaces. Here’s how following their guidance can help:
It helps you stay legally compliant from the start
The law doesn’t give startups a free pass. If you’ve got staff, you’ve got legal duties. This is true no matter how new or small your company is.
ACAS tells you what counts as best practice, what your staff have a right to, and how to stay within the lines of employment law. That means:
- No dodgy contracts
- No unpaid overtime disguised as 'startup grind'
- No unfair sackings because someone didn’t work out
....And no panicked Googling the day before a tribunal hearing.
It protects you if something goes wrong
Let’s say you end up in a dispute. An employee raises a complaint, or worse, takes you to an employment tribunal.
One of the first questions asked? 'Did the employer follow ACAS guidance?' Tribunals use the ACAS Codes of Practice as a benchmark. If you’ve followed it, you’ve got a much stronger case. If not, you could be seen as acting unfairly, even if you didn’t mean to.
ACAS is also there to help prevent things from escalating. They’re experts in industrial relations, providing conciliation between staff and employers before it hits court. That alone can save you a fortune and a bunch of sleepless nights.
It helps you build a better workplace culture
Beyond just following rules, leaning on guidance from ACAS can help you build a workplace where people want to work. They show you how to set up clear processes that support good relationships between employers and employees. That can mean less tension, less drama, and a team that knows exactly where they stand.
ACAS doesn't just focus on contracts and procedures. They also offer free advice on things like mental health, flexible working, and how to improve organisations and working life for everyone on the team.
It’s practical. It’s people-first. And it works.
Key parts of the ACAS framework to follow
If you’ve never hired before, it can be hard to know where to start. That’s why ACAS lays out a simple HR framework. Consider it the basics every employer should have in place. These aren’t merely suggestions. They help you stay on the right side of employment rights and avoid costly mistakes down the line. Here are some of the things you need to sort first:
Fair recruitment and onboarding processes
Hiring someone isn’t just about offering the job and hoping for the best. You need to recruit fairly and treat candidates equally. You also need to follow the rules when it comes to background checks, right-to-work documents, and onboarding.
ACAS gives guidance on things like avoiding discrimination in job ads, doing fair interviews, and making sure your onboarding process covers all the legal bits. Start as you mean to go on. That means being organised, i.e., not scrambling to sort someone’s contract the night before they start.
A solid recruitment platform and HRIS can help you set up clear hiring workflows, so nothing important gets missed. From storing interview notes to triggering onboarding steps like offer letters and policy sign-offs, the right tools make it easier to get things right from day one.
Written employment contracts and job offers
If you hire someone, you’re legally required to give them a written statement of terms. You usually do this before their first day. This written statement can include pay, hours, holidays, notice, and a job title, amongst other things.
ACAS recommends you go one step further and issue a full employment contract. Why? Because it covers things like probation, sick pay, and what happens if things go south. It protects you as much as the employee. They even have free templates to get you started.
Using a modern Human Resources Information System (HRIS) can also help with this. It can automate the entire process. You set up a job offer once, and the system sends the right contract, with the right terms, to the right person. Minus the chasing, manual edits, and version mix-ups. It's a great way to keep everything tidy and above board from the get-go.
Pay, holiday, and working hours policies
You’ve got to pay people correctly, give them paid time off, and make sure they aren’t working illegal hours. These are some of the most basic workplace rights. And ACAS has step-by-step advice to help you get it right.
That includes things like calculating holiday entitlements (yes, bank holidays count differently depending on the contract), setting fair hours, and what to do if someone works overtime. If your setup’s even slightly off, it can cause problems fast.
Having localised Human Capital Management (HCM) and payroll software helps loads here too. It handles the nitty-gritty based on current UK rules. For example, pro rata holiday pay or Working Time Regulations. It also makes it far easier to build policies into your onboarding so staff know exactly what they’re signing up for.
Disciplinary and grievance procedures
This is one that often catches employers and employees out. If someone messes up at work, or if someone’s unhappy with how they’ve been treated, you need a fair, written process to deal with it. You can’t just 'let it take its course'.
ACAS lays out exactly what a disciplinary or grievance process should look like, from investigation to outcome. Following their approach can help you stay fair, consistent, and legally safe. Skip this, and a simple workplace issue could turn into a full-blown legal fight.
How to use ACAS as a startup
ACAS isn’t only for big companies with full-blown HR departments. It’s set up to help everyone. This includes tiny teams, brand-new founders, and micro businesses still finding their feet. Whether you’re hiring your first employee or sorting your 20th, ACAS can make sure you're following best practice without getting bogged down in legalese.
Here’s how to get the most out of it:
Access free templates and guides
There's no need to start from scratch. ACAS has a whole library of free templates, checklists, and how-to guides that make life easier for employers. Think free sample contracts, disciplinary procedures, holiday calculators, and even example onboarding checklists.
Unsure what you legally need to include in a contract? Struggling to write up a grievance process? There’s probably a simple guide on the ACAS site that breaks it down. It’s one of the best employers’ free tools you’ll find for building your HR processes the right way from day one.
Call their helpline or use their online advice
Got a situation that’s a bit more complicated? ACAS also has a helpline where you can talk to a real person (not a chatbot) and get free, impartial advice. This is true no matter how small your business is.
They’ll help you understand your legal responsibilities, talk you through your options, or explain how to handle something step by step. They also have lots of other services online if you prefer to look it up yourself. This kind of guidance can help you resolve disputes early, before they spiral into formal complaints or legal trouble.
Train your team as you grow
The more your team grows, the more HR tasks are likely to land on your plate. And while Google is great for a lot of things, it’s not always the best place to figure out UK employment law.
ACAS offers training for managers, founders, and teams that covers the basics of hiring, managing people, and keeping things fair. They offer training sessions online and in-person, and they’re often cheaper than private HR consultants. Some are even free.
Not quite ready to hire a full-time HR person? Training through ACAS can be a smart (and budget-friendly) way to get up to speed.
Keep it simple and stress-free with Rippling
Following ACAS guidance is the smart thing to do. But keeping track of everything, like contracts, policies, pay, onboarding, time off, and right-to-work checks, can quickly get messy. Especially if you're trying to do it all yourself in a spreadsheet.
Enter Rippling.
Rippling is an all-in-one HR and workforce management platform built for UK businesses. It connects HR, Payroll, IT, and spend management in one place. And it’s all built on a single source of truth. So, when you update an employee’s contract, change their hours, or add them to the payroll, the system updates everything automatically.
Here’s how Rippling helps you stick to the ACAS playbook, minus admin headache:
- Write and send proper contracts with all the right terms, policies, and probation clauses pre-filled and ready to go.
- Nail onboarding by setting up workflows that cover everything from right-to-work checks to policy sign-offs.
- Run compliant payroll that calculates pay, tax, and holiday entitlements correctly based on UK law.
- Store employee records securely, from contracts and job changes to performance notes and leave history, all in one tidy place.
- Track time off and working hours so you know you’re staying within legal limits (and your staff know where they stand).
- Create and update HR policies and make sure everyone sees and agrees to the latest version.
The best part? Rippling isn’t just for now. It’s a scalable solution that grows with your business. Whether you’re hiring your first person or your fiftieth, it keeps everything clean, compliant, and easy to manage without needing a dedicated HR team.
Trying to follow ACAS and keep your business running shouldn’t be a full-time job. With Rippling, it doesn’t have to be.
ACAS FAQs
Do startups need to follow ACAS guidance?
Yes. If you’ve got employees, ACAS applies to you. This is true even if you’re a brand-new startup or a team of two. The law doesn’t care how small you are. And neither do tribunals.
ACAS guidance shows small businesses how to follow employment rights, handle workplace conflict, and set up fair systems from the start. Their support is there to help you avoid making expensive mistakes. Think of it like an employment rulebook.
Is ACAS advice legally binding?
Not exactly. But ignore it at your own risk.
ACAS guidance isn’t law. But it’s based on UK employment law and used as a reference point in employment relations disputes. That includes their Codes of Practice. If a case ever reaches a tribunal, they’ll ask whether you followed the ACAS code.
So, while it’s not legally binding, it’s seen as best practice. Following ACAS advice is the smart way to stay out of trouble.
What happens if I don’t follow the ACAS code?
If you ignore ACAS guidance, for example, not having a proper grievance process or sacking someone unfairly, and the employee takes you to a tribunal, it can go badly for you.
Tribunals don’t expect you to be perfect. But they do expect you to follow best practice and take steps to resolve things fairly. If you haven’t done that, they might rule against you, even if the actual issue seemed minor. In some cases, the compensation awarded to the employee can go up by 25% if it’s clear the employer ignored the ACAS Code of Practice.
Bottom line? Following ACAS guidance protects employers and employees alike. It also shows you’ve made a genuine effort to deal with the issue properly.
What three methods does ACAS use to settle disputes?
ACAS has three main ways to help resolve workplace problems and stop things from going to court:
- Early conciliation: If someone is about to make a claim against you, ACAS steps in first to help both sides talk it out. This is called providing conciliation. It’s often enough to stop things from escalating.
- Arbitration: If both sides agree, ACAS can act as an arbitration service. This is where someone independent hears both sides and makes a final decision. It’s quicker, cheaper, and far less stressful than going to the tribunal.
- Advisory services: If there’s tension brewing or you just want to prevent issues before they start, ACAS can work directly with your business to help you improve your systems. It’s one of the few government-backed services that’s completely impartial.
All of this is available to employers free of charge. They’re not there to rip you off or trip you up. They’re there to help you resolve disputes, protect workplace rights, and keep things fair for employers and employees alike.
This blog is based on information available to Rippling as of May 13, 2025.
Disclaimer: Rippling and its affiliates do not provide tax, accounting, or legal advice. This material has been prepared for informational purposes only, and is not intended to provide or be relied on for tax, accounting, or legal advice. You should consult your own tax, accounting, and legal advisors before engaging in any related activities or transactions.
