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A proposed new code of practice could allow employment tribunals to raise awards by up to a quarter, one employment body has said.

This could be good news for students who plan to work for organisations during their gap year, as they could receive more money should they be let go.

Acas revealed the government is set to introduce the provision to adjust awards by up to one quarter should one of the parties unreasonably fail to follow the employment body's code.

John Taylor, chief executive of the organisation, explained that Alistair Darling had asked Michael Gibbons, Powergen's former communications chief, to review the options for simplifying and improving all aspects of employment dispute resolution to "make the system work better" for all concerned.

"In his report Michael Gibbons concluded, amongst other things, that the current discipline and grievance statutory procedure, whilst bringing some benefits, nevertheless had unintended negative consequences and should therefore be repealed. Acas agreed with this view," he added.

He concluded that the new system provides "good practice" on the handling of discipline and grievance situations and can also be taken into account by tribunals considering relevant cases.

According to government statistics, between 2006 and 2007 there were some 132,577 claims accepted by government tribunals - 10,762 were rejected, of which 3,861 were re-submitted and subsequently approved.