Mediation for small businesses

Are you an SME? Mediation can benefit your business in many ways

If you are an SME then positive relations with clients and customers will be paramount. The same will be true for relations between you and your staff. You will want to be focussing 100% of your time on the business, and on delivering your business objectives. Any disputes or differences in relation to your business are a distraction from what you want to be achieving.

Not only can they lead to financial expense, but they use up valuable time and energy. Mediation is a process that can be used to resolve disputes quickly and effectively with the minimum expense, allowing you to focus back on what matters to your business.

What is mediation?

Mediation is a form of alternative dispute resolution. It is a voluntary and confidential process where an independent and impartial third party ( the mediator) assists the participants to reach a solution to their differences which is acceptable to all. The focus is on moving forward to find a workable agreement that allows you to put the past behind you.

When is it used?

Ideally mediation will be used at the early stages of a dispute, but can be used at any time in the course of a dispute. If any internal workplace proceedings or legal action has begun this can be put on hold while you try mediation. Legal rights remain intact .

What can it deal with?

Mediation can be used to resolve any kind of dispute or differences between a business and its customers , clients or staff. Here are some examples of what it can help with.

• a dispute about your services or products


• a dispute about an unpaid invoice or fees


• a dispute about something your business bought or instructed


• a relationship that has broken down with a customer or client, contractor or service provider


• a grievance between employees


• a grievance between employer and employee


• a disciplinary or capability matter that does not amount to gross misconduct


• concerns about an employee's absence from and return to work


• concerns about whether an employee is 'disabled' in terms of the Equality Act and the need for reasonable adjustments

Who can instruct the mediation?

You can contact us directly, or ask your solicitors or other advisors to do so. You can contact us for an informal discussion about your problem and to find out whether mediation will be appropriate. This can be before or after discussing your idea to use mediation with the other party. One of our jobs can be to approach the other party and explain what mediation is about and get their consent to participate.

Who attends the mediation?

In any difficulty relating to the business there will need to be at least one person attending for each party. Those attending need to understand what the dispute is about and to have authority to reach a binding agreement if mediation is successful.

Representatives are not required at the mediation, but are welcome.

It can be useful to discuss the matter with a legal advisor before mediation to go over the strengths and weaknesses of your case. However mediation allows you, as a business, to look at the bigger picture, and to take a pragmatic view of how you would like to try to resolve matters.

We often feel angry and upset by differences with others, particularly where we feel they raise questions about our business or integrity. Mediation allows you to explain how you feel about the situation, to find out what the other party thinks, and then to look forward to what it is you need to achieve to focus back on your business.

You take control of the outcome and shape the solution. If the mediation is about a workplace issue then it may just be the employees concerned who attend. Someone within the business will have to commission the mediation and may need to be available to check that workable solutions are being identified. Alternatively it may be a suitably senior employee on behalf of your business and the employee involved.

Who pays for mediation?

The costs of mediation are usually shared between participants. This is something to consider when proposing the use of mediation with the other party. They too may face the costs of defending or pursuing a court action, and be willing to meet their share of an agreed fee to work to resolve matters.

You may wish to consider meeting the fee for both parties in an effort to get resolution. It may be more cost effective for your business in the long run. In workplace mediations the employer usually pays the costs.

What happens if agreement is reached?

If agreement can be reached then the mediator will assist you both to draw up a confidential mediation agreement with time scales for implementation. Experience shows that a mediation agreement can enable your business to receive any payment agreed more effectively and quickly than court proceedings. Mediation also allows for creative outcomes that do not focus solely on money