Why might companies wish to use mediation?

What is mediation?

Mediation is a form of Alternative Dispute Resolution (ADR) used in the UK. It allows individuals or businesses to resolve disputes without going to court.  There are no hard or fast rules for mediation, the rules are flexible.

It involves a mediator, agreed upon by all parties. A mediator acts as an impartial third party. Their role is not to make a decision or impose their will, but to oversee the meeting, encourage discussion, and help the parties reach a mutually acceptable agreement.

When can mediation be used?

Mediation is a flexible and voluntary process, aimed at finding a resolution, and can be used at any stage of the dispute.

Common examples where mediation is used:

• Workplace disputes
• Neighbour disputes
• Land and property disputes
• Wills and probate disputes
• Commercial disputes
• Consumer disputes

Why might companies use mediation?  

1. Cost effective

Mediation is significantly less expensive than going to court.

• Faster resolution

Court cases can take months or even years to reach a resolution. Whereas mediation can often be arranged within a week and resolved in just a day.

• Confidentiality

All discussions and agreements made during the mediation are private and confidential, and only become binding when put into writing and signed by the parties.

• Control

Unlike in court, where a judge decides the final decision. Mediation allows the parties to remain in control and reach an agreement between themselves.

• Preserves relationships

Mediation encourages cooperation, which can help repair and maintain relationships, as solutions are tailored to meet the needs of both parties.

• High success rate

In the UK, Mediation has a high success rate, with 92% of mediated cases reaching either a full or partial agreement[1].

[1] https://www.cedr.com/wp-content/uploads/2023/02/Tenth-CEDR-Mediation-Audit-2023.pdf