Employment disputes can arise in any workplace, often leading to tension and potential legal consequences if not handled effectively.
Mediation plays a crucial role in resolving employment disputes by providing a structured, yet flexible process that facilitates open communication and mutually beneficial outcomes.
In this article, we’ll explore the significance of mediation in employment disputes, how it works, and how both employees and employers can benefit from it.
What is Mediation?
Mediation is a voluntary and confidential process where an impartial third party, known as a mediator, assists disputing parties in reaching a mutually acceptable resolution.
Unlike formal legal proceedings, mediation is a more informal and cost-effective approach that encourages constructive dialogue and collaboration.
Mediation services are offered by Employment New Zealand. These services are free, making mediation an accessible option for resolving workplace disputes.
When is Mediation Used?
Mediation is commonly used in employment disputes involving:
Personal grievances (e.g. unfair dismissal, discrimination, harassment)
Contract disputes (e.g. including wage disagreements, employment terms)
Performance-related conflicts
Workplace relationship breakdowns
Bullying and harassment claims
The Mediation Process
1. Requesting Mediation – Either an employee or employer can request mediation through Employment New Zealand, as well as through other employment advocacy organisations. This can be initiated independently, or as part of a legal process. Costs are also usually covered by the employer.
2. Preparation – Both parties are encouraged to gather relevant documentation, clarify their concerns, and outline possible solutions before attending mediation.
3. The Mediation Meeting – A neutral mediator facilitates discussions between both parties, ensuring a fair and balanced process. Mediation can be conducted in person, via phone, or online, depending on the parties’ preferences.
4. Reaching an Agreement – The goal of mediation is to achieve a mutually agreed settlement. If both parties agree, the terms are documented in a legally binding Record of Settlement.
5. Post-Mediation Steps – If an agreement is reached, both parties must adhere to the terms outlined. If no resolution is found, the dispute may progress to the Employment Relations Authority (ERA) or the Employment Court.
Benefits of Mediation
1. Cost-Effective and Efficient – Mediation is often free or relatively low-cost depending on the provider, and often resolves disputes faster than litigation, saving both parties time and money.
2. Confidential – Unlike court proceedings, mediation is private and encourages open, constructive discussions rather than confrontational disputes.
3. Mutually Beneficial Outcomes – Mediation allows for flexible solutions that both parties can agree on, fostering better ongoing workplace relationships.
4. Less Stressful than Legal Action – The idea of court is overwhelming and stressful for many. Mediation provides a less stressful alternative to resolving disputes compared to legal proceedings.
Conclusion
Mediation is a vital tool for resolving employment disputes, offering a fair, efficient, and confidential process. Employees and employers should consider mediation as a first step in addressing workplace conflicts before escalating matters to legal proceedings.
By engaging in mediation in good faith, parties can find practical solutions that benefit both sides, and contribute to a healthier work environment.
Mahi Law can Help!
Our expert team will help you understand your employment rights, and pursue resolution (including compensation) through various channels, such as: Without prejudice negotiations, mediation, the Employment Relations Authority, or Employment Court if required.
We also work on a no-win, no-fee basis – if we win your case, your employer covers the costs.
Get in touch for a free consultation! You can fill out this form – or contact us at [email protected], or 027 425 2231.
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