Employers should be seeking to resolve workplace disputes and avoid the issue of litigation, the Trades Union Congress (TUC) has said.
The TUC has welcomed the publication of the Employment Bill and has used the announcement to call for employers to do more to amend problems in the workplace by using internal procedures.
TUC general secretary Brendan Barber commented that the government needs to encourage employers to take the right action.
"The new legislation must be accompanied by an effective Acas Code of Practice, setting out guidance for both employers and employees on the steps they should follow when problems arise at work," he said.
He added that the changes made to dismissal cases will mean employers must adhere to workplace procedures and "conduct appropriate investigations before sacking a member of staff".
Mr Barber has recently been appointed as the new commissioner of the Employment and Skills Commission, saying he is looking forward to helping employees reach their "full potential" in the workplace.