How Mediation is Important for Your Business How Mediation is Important for Your Business

How Mediation is Important for Your Business

  • date-ic 21 Feb 2022

Mediation is a process that can assist your business in addressing disputes that emerge in your day-to-day operations. This can be anything from disputes with employees to disputes with builders, suppliers or subcontractors.

Common disputes

Disputes with employees is common in any business and can be about a wide range of issues from:

  • Wage rates
  • Grievance management
  • Bullying and harassment
  • Perceived unfair disciplinary action
  • Sexual harassment or racial discrimination
  • Performance management
  • Relationship issues with other employees and supervisors

With builders, suppliers, subcontractors or residential customers, disputes can include:

  • Non-payment of invoices
  • Breaches and variations of contractual obligations
  • Building defects and delays
  • Electrical and regulation issues

In most circumstances, these disputes can be resolved through good communication, complying with contractual obligations and procedural fairness. However, where these disputes go out of hand, litigation is close behind and this can cost a lot of money for your business.

What is mediation?

Mediation is a process through which disputing parties meet to attempt to resolve their dispute with the help of an independent and accredited mediator. A mediation session typically runs for around 2-hour periods and multiple sessions may be involved if the matter is complex and if the parties require it.

During a session, the mediator would guide parties to communicate openly and identify options. Unlike in litigation where outcomes may be rigid, mediation allows for creative and flexible solutions. At the end of the session(s) parties would come to their own agreement on how to resolve the dispute.

Mediators do not:

  • Make decisions for the parties
  • Determine who is in the right or wrong
  • Impart legal advice

Benefits of mediation

The benefits of mediation are many.

For workplace mediation with employees, it saves money for the employer as they are not incurring costs defending a claim in court or hiring external investigators to make a case. It also allows for workplace relationships to be salvaged and healed. Mediation is a process through which employees are able to express their views and emotions and at the same time hear the views and emotions of either the employer or fellow employees. Additionally, it speeds up the process of resolution and allows for people to get back to work quicker.

With commercial disputes, mediation allows for business relationships to be improved by allowing for continued dealings. It is informal and avoids the costs of going to court, it is quicker than most other processes, it puts things into perspective and allows for the needs and interests of the businesses to be focused on.

A very important benefit of mediation in commercial disputes is that the control sits with the parties to work together collaboratively to find mutually beneficial solutions, instead of attending court and having a judge make a binding decision that the parties may be displeased with.

How can we help?

Constructive Legal Solutions has accredited mediators that can assist you in your disputes. If you are unsure about whether mediation is the right process for you, feel free to give us a call on 1300 972 092 or email us via admin@constructivelegalsolutions.com.au and we can advise you on the suitability of mediation to your scenario.

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