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The government's new code of practice governing discipline and grievance procedures will be taken into account by employment tribunals, according to the Advisory, Conciliation and Arbitration Service (Acas).

Cases will be reviewed in light of the new code of practice, which is intended to simplify employment dispute resolution, says John Taylor, Acas chief executive.

He comments: 'As well as providing good practice on the handling of discipline and grievance situations it can also be taken into account by employment tribunals when they consider relevant cases.'

If an employee or employer is deemed to have unreasonably failed to have followed the Acas code then tribunals are allowed to adjust awards by up to 25 per cent, he reveals.

Michael Gibbons, a member of the Department for Trade and Industry's ministerial challenge panel, was commissioned to review legal requirements, the functioning of employment tribunals, and consider new initiatives to help resolve disputes at an earlier stage.

Government statistics show that in 2006-07 there were 132,577 claims accepted by employment tribunals.

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