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• ACAS - Associate of the Casualty Actuarial Society

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• ACAS - Associate of the Casualty Actuarial Society

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ACAS Best Practice Knowledge Exam 1,2,3,4,5 and 6 Questions And Answers With
Complete Solutions
 Course
 ACAS - Associate of the Casualty Actuarial Society
 1. Q: What is the primary role of ACAS in UK employment relations?
A. To represent trade unions in court
B. To provide legal representation to employers
C. To improve organizations and working life through better employment relations
D. To set pay levels in collective agreements
 ✅ Correct Answer: C. To improve organizations and working life through better
employment relations
🧠 Rationale: ACAS is a non-departmental public body whose main role is to
promote strong employment relationships by offering advice, training, conciliation,
and arbitration services.


 2. Q: When handling a disciplinary issue, what should employers do first according
to the ACAS Code of Practice?
A. Suspend the employee immediately
B. Dismiss the employee without discussion
C. Carry out a fair investigation to establish the facts
D. Hold a grievance hearing
 ✅ Correct Answer: C. Carry out a fair investigation to establish the facts
🧠 Rationale: ACAS emphasizes the need for a prompt and thorough investigation
before any formal action is taken. This ensures fairness and compliance with
employment law.


 3. Q: What is the minimum requirement for a disciplinary hearing under the ACAS
Code?
A. At least two senior managers present
B. Legal counsel must be present
C. The employee must be informed in writing and given a chance to respond
D. Held within 24 hours of the incident
 ✅ Correct Answer: C. The employee must be informed in writing and given a
chance to respond
🧠 Rationale: The ACAS Code of Practice on Disciplinary and Grievance Procedures
requires that employees be told the case against them in writing, and have an
opportunity to explain before decisions are made.


 4. Q: What should employers consider before dismissing an employee for
misconduct?
A. Whether the misconduct is also criminal

, B. Whether dismissal falls within the range of reasonable responses
C. Whether the employee has resigned before
D. If the employee is on holiday
 ✅ Correct Answer: B. Whether dismissal falls within the range of reasonable
responses
🧠 Rationale: ACAS and UK tribunals look at whether an employer's action is fair and
reasonable in the circumstances, not just if the misconduct occurred.


 5. Q: ACAS encourages the use of mediation primarily in which situations?
A. Serious legal disputes
B. Workplace conflicts where relationships need to be repaired
C. Redundancy processes
D. Payroll errors
 ✅ Correct Answer: B. Workplace conflicts where relationships need to be repaired
🧠 Rationale: Mediation is an informal, voluntary process used to resolve
interpersonal disputes, often between employees or between staff and management.


 6. Q: What is the status of the ACAS Code of Practice in UK law?
A. It is legally binding
B. It must be followed or fines are automatic
C. It is not legally binding but can influence tribunal outcomes
D. It applies only to unionized workplaces
 ✅ Correct Answer: C. It is not legally binding but can influence tribunal outcomes
🧠 Rationale: The ACAS Code is not law, but employment tribunals consider
whether it has been followed when deciding cases—and may adjust awards by up to
25% if it has been unreasonably ignored.


 7. Q: According to ACAS guidance, what is one of the most effective ways to
manage absence in the workplace?
A. Monitoring employee emails
B. Issuing warnings after 1 day of absence
C. Implementing a clear absence policy and return-to-work interviews
D. Paying bonuses for no sick leave
 ✅ Correct Answer: C. Implementing a clear absence policy and return-to-work
interviews
🧠 Rationale: ACAS recommends proactive steps like clear policies and return-to-
work discussions to both support employees and reduce repeat absences.


 8. Q: What is meant by “constructive dismissal” under UK employment law and
ACAS guidance?
A. When an employer makes a mistake in procedure
B. When an employee is dismissed due to poor performance

, C. When an employee resigns due to the employer's serious breach of contract
D. When an employee resigns to get another job
 ✅ Correct Answer: C. When an employee resigns due to the employer's serious
breach of contract
🧠 Rationale: ACAS defines constructive dismissal as when an employee feels forced
to resign because the employer has seriously breached the employment contract, such
as through bullying or demotion.


 9. Q: According to ACAS, what is an example of indirect discrimination?
A. Refusing to hire someone due to disability
B. Requiring all staff to work on Saturdays, affecting certain religious groups
C. Making rude comments about race
D. Paying men more than women for the same job
 ✅ Correct Answer: B. Requiring all staff to work on Saturdays, affecting certain
religious groups
🧠 Rationale: Indirect discrimination occurs when a policy or rule applies to
everyone but disadvantages a protected group, unless it can be justified as a
proportionate means of achieving a legitimate aim.


 10. Q: What does ACAS recommend before making staff redundant?
A. Offering severance packages immediately
B. Avoiding consultation to speed up the process
C. Considering alternatives such as reduced hours or redeployment
D. Posting termination notices publicly
 ✅ Correct Answer: C. Considering alternatives such as reduced hours or
redeployment
🧠 Rationale: ACAS strongly recommends exploring alternatives to redundancy to
retain skilled staff and maintain morale. Consultation and transparency are legally
required.
 11. Q: According to ACAS, when should a grievance procedure be used?
A. Only after legal action is initiated
B. Whenever an employee has a concern, problem, or complaint about work
C. Only for pay disputes
D. After a verbal warning is given
 ✅ Correct Answer: B. Whenever an employee has a concern, problem, or
complaint about work
🧠 Rationale: ACAS encourages using grievance procedures to address any workplace
concerns—whether about relationships, conditions, or treatment—before they escalate.


 12. Q: What is one of the first steps in handling a formal grievance, according to the
ACAS Code?
A. Escalate to legal action
B. Hold a disciplinary hearing

, C. Arrange a grievance meeting without unreasonable delay
D. Ask the employee to withdraw the complaint
 ✅ Correct Answer: C. Arrange a grievance meeting without unreasonable delay
🧠 Rationale: The Code stresses that grievances should be addressed promptly and
fairly, starting with a formal meeting to understand the issue.


 13. Q: What right does an employee have during a disciplinary or grievance meeting
under ACAS Code of Practice?
A. To bring their child
B. To have legal counsel present
C. To be accompanied by a colleague or trade union representative
D. To record the meeting secretly
 ✅ Correct Answer: C. To be accompanied by a colleague or trade union
representative
🧠 Rationale: The legal right to be accompanied is a key protection in formal
procedures, ensuring fairness and support.


 14. Q: What is ACAS’s view on flexible working requests?
A. They must be approved
B. They must be considered in a reasonable manner
C. Only parents may request them
D. They are only relevant during pandemics
 ✅ Correct Answer: B. They must be considered in a reasonable manner
🧠 Rationale: ACAS states that all eligible employees have a statutory right to request
flexible working, and employers must consider it fairly.


 15. Q: What should an employer do if they receive an informal complaint of
bullying?
A. Wait until it becomes formal
B. Take no action
C. Address it early through informal discussion or mediation
D. Fire the accused immediately
 ✅ Correct Answer: C. Address it early through informal discussion or mediation
🧠 Rationale: ACAS emphasizes the importance of early intervention, often through
informal methods, to resolve problems and avoid escalation.


 16. Q: What is the legal minimum consultation period for 100 or more redundancies
within 90 days?
A. 15 days
B. 30 days
C. 45 days
D. 60 days
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