New guidance issued on discipline and grievances should help save businesses time and money by resolving disputes internally, according to the employment advisory service.

ACAS's new code has been revised in line with the changes to workplace dispute resolution included in the Employment Bill.

Pat McFadden, minister for employment relations, says that the code is a 'key element' in the government's efforts to 'streamline and simplify' dispute resolution for the benefit of both employers and employees.

'It will complement the removal of statutory measures by establishing flexible, principles-based guidance to help resolve disputes early,' she predicts.

Chief executive of ACAS John Taylor says that the changes come as a result of the Michael Gibbons review into workplace dispute resolution.

'The key is for business to act early to prevent any long-term consequences,' he advises.

According to the Employment Relations Solicitors, currently when an employee is dismissed without the statutory procedures being followed, their dismissal is treated as automatically unfair.

In this case, employers are liable to award employees four weeks' pay to be increased by between ten and 50 per cent dependent on the degree of non-compliance.

To contact ACAS, visit www.acas.org.uk.