Workplace conflict, by adversely affecting employee wellbeing, has a direct effect on organisational productivity and the wider UK economy, says Acas, which is why it is today launching its “bold plan” to combat the growing problem. Part of this plan, it says, will be to use AI and other digital services to handle conflict resolution in organisations.
The advisory, conciliation and arbitration service says employers must act now in taking a prevention-first approach because it is seeing workplace disputes soar. Calls to its helpline and early conciliation service are rising, with cases increasingly complex and often involving issues of dismissal, pay and discrimination. (covered in this news story on July 25, 2025).
Acas estimates that disputes cost the economy tens of billions of pounds each year – £28.5 bn to be exact – in formal resolution, while also undermining employee health and organisational performance.
Rapid change driving conflict
One of the reasons driving this surge is the rapid change in workplaces: global events are testing the resilience of organisations and households, new technologies and ways of working are transforming jobs, and the make-up of the workforce is evolving.
Not only this, but the new Employment Rights Bill signals a significant moment for Britain’s workplaces, bringing employment relations to the forefront of the national agenda, meaning employees are more aware of their rights.
Niall Mackenzie, CEO at Acas, commented:
“These shifts bring opportunities, but also new pressures that can increase the risk of conflict if left unchecked – from adapting to new regulations and expectations to navigating generational change, hybrid working and industrial transformation.”
The new strategy sets out a joined-up, prevention-focused approach to help employers and workers adapt well, manage differences constructively, and keep workplaces healthy and productive.
Three priorities for healthier workplaces in the new strategy:
The five-year plan focuses on three ambitions:
- Healthier employment relations – supporting employers and workers to build stronger relationships and prevent avoidable conflict.
- Better conflict management – building organisational confidence and capability to address issues constructively.
- Earlier dispute resolution – ensuring disputes that do arise are resolved quickly and fairly, saving stress, time and cost.
As part of the strategy, Acas has committed to:
- expanding support for small and medium-sized businesses, often the hardest-hit by unresolved disputes,
- launching a Conflict Capability Development Programme for leaders and employees,
- targeting sectors most prone to conflict,
- and publishing a new State of Workplace Relations report to highlight trends and risks
Mackenzie has called on employers to “do better at disagreeing well; if we can stop issues from escalating, or resolve them earlier, the benefits will be felt across both the economy and society”.
This is a message that has been echoed in our thought leadership contributions recently, such as this piece by hostage negotiator George Kohlrieser, author of Hostage at the Table, and this piece by Jane Gunn, Media and Conflict Specialist.
Acas is urging employers to partner with them to embed prevention-first approaches and build healthier, more resilient workplace cultures.
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