Workplace Mediation: Resolving Disputes before they Become Claims

That is why mediation is worth considering early. Acas research on workplace conflict estimates the annual cost to UK employers at around £28.5 billion. Formal procedures and litigation are expensive, but the commercial damage often begins much earlier, through lost management time, reduced productivity and damaged working relationships.

What is Workplace Mediation?

Workplace mediation is a voluntary and confidential process in which an impartial mediator helps people in dispute talk through what has happened and agree how they will work together in future. The mediator does not investigate, decide who is right, or impose an outcome. The focus is practical: what needs to change so that the working relationship can continue.

Mediation can be particularly useful where there has been a communication breakdown, personality clash, management relationship issue or team conflict. It can take place before a formal grievance is raised, during a wider process if appropriate, or after a grievance or disciplinary procedure to help repair the relationship.

Mediation is not the same as Conciliation or Arbitration

The terms are sometimes used loosely, but they mean different things. Mediation is usually an internal or workplace process and depends on both parties agreeing to take part. Conciliation, usually through Acas, is directed at settling a potential or actual employment tribunal claim. Arbitration goes further: an independent third party makes a binding decision, but it is rarely used in employment disputes.

What happens in Mediation?

A typical mediation may last a day or less. The mediator will usually speak to each person separately first, before bringing the parties together if that is appropriate. If agreement is reached, it is normally written down as a practical working agreement. It might cover how people will communicate, divide responsibilities, raise concerns, or review progress.

That agreement is not usually a settlement of legal claims. If an employee is giving up the right to bring a tribunal claim, the parties will normally need either an Acas COT3 or a formal settlement agreement. A settlement agreement is only valid for this purpose if the employee has received advice from a relevant independent adviser, usually a solicitor.

When Mediation is not Appropriate

Mediation is not a substitute for investigation. Allegations of harassment, discrimination, bullying, safeguarding concerns or serious misconduct may need a formal process. Employers should be particularly careful not to use mediation to avoid dealing properly with complaints that require findings of fact or protective action.

Mediation also requires genuine willingness and a reasonable balance of power. If one party feels pressured into taking part, the process is unlikely to succeed and may make matters worse.

Workplace conflict is easier to manage before positions harden. The longer a dispute continues, the more likely it is to affect performance, absence, retention and legal risk. That matters even more as employment law changes give many employees longer to consider bringing tribunal claims.

For employers, the practical step is to spot conflict early, give managers confidence to address concerns informally, and know when to bring in an impartial mediator. Our certified workplace mediator will be happy to have a no-obligation discussion to see how we can help address conflict in your workplace.

Esther Marshall

Member