Why do employment disputes arise?

Employment relationships are an ongoing relationship that combines a variety of interests: salary, job security, social benefits, promotion opportunities, workload, interpersonal relationships and a sense of meaning. When the balance between these factors is disrupted, a build-up of frustration, perceived unfairness and lack of trust begins.

Employment disputes may appear around a specific event – such as a pre-termination hearing, a public reprimand or a sudden change in role – but in most cases behind that concrete event lies a longer history of feelings and signals that were never properly addressed. The employee may feel unseen or unappreciated, the manager may feel the employee is not committed enough, and into that gap enter fears, interpretations and legal advice that sharpen the confrontation.

For employers too, employment disputes are a source of concern. They harm team motivation, management focus, recruitment and retention, and can also cause external reputational damage. In such situations, the question is not only what is “legal or illegal”, but how to deal with the crisis in a responsible, respectful and practical way.

When is it right to choose mediation in employment disputes?

Mediation can be chosen at a relatively early stage, when it is already clear that the dispute is escalating but before formal letters have been exchanged and all possible actors have been involved. In many cases, early mediation makes it possible to save the employment relationship, improve communication and clarify employment terms in a transparent and fair way.

Mediation is also appropriate at later stages, for example when the employee is already represented by a lawyer or when the employer is considering suing the employee. Even then, it is possible to pause, shift the energy away from a one-sided confrontation and into a joint space in which the parties examine what can still be repaired and what is the most respectful way to part ways if continued employment is no longer feasible.

Sometimes mediation takes place even before the conflict is formally defined as such. An HR manager, department head or workers’ committee may identify recurring friction points and request a mediation process between management and staff, between two departments or between specific colleagues. In such cases, mediation becomes a tool for rebuilding trust and creating a healthier communication culture in the organization.

The New Partnership method in employment disputes

In the New Partnership method, employment dispute mediation does not focus only on who is right and who is wrong, but on how the parties want the working relationship to look from this point forward. The basic assumption is that both employee and employer have a deep interest in closing this chapter in a way that allows them to move on – together or separately – with less anger and more clarity.

The process begins with defining future-oriented goals. The employee is invited to articulate what needs to happen for them to feel that justice has been done, and the employer is invited to clarify what is necessary in order to stand behind any agreement while protecting the organization. Instead of focusing solely on the past, the New Partnership method invites the parties to describe how they would like the next three months, the coming year, or the end of the relationship to look.

Alongside these goals, full space is given to emotions: feelings of discrimination, anger, humiliation, disappointment, burnout. Emotions are not an obstacle on the way to an agreement, but part of the material we work with, on condition they are translated into language of needs, requests and boundaries rather than personal attacks.

How does an employment dispute mediation actually work?

In the New Partnership method, the mediation process in employment disputes always begins with an introductory meeting held in person or via video with both parties together. This is a relatively short, no-cost meeting in which the mediator hardly enters the substance of the dispute. The focus is on presenting the method, explaining the stages of the process, the confidentiality rules, how decisions will be made and what the role of each person in the room will be. The goal at this stage is for the parties to get to know the mediator, understand how the process will be conducted and assess whether this feels like a safe and suitable space for them.

At this point, the mediator does not meet privately with either party and does not ask anyone to “tell the whole story” separately. The emphasis is on creating a joint foundation of trust and rules, based on the understanding that the process begins only when both parties enter it together, out of conscious choice.

If, at the end of the introductory meeting, both parties feel they have confidence in the mediator and the process, they receive an explanation of the formal mediation opening agreement. Only after both sides sign this agreement does the substantive stage begin, in which the dispute itself is addressed in depth.

In the mediation sessions – held in person or online – the employee and the employer’s representative sit together with the mediator, and each presents their perspective: what happened in their view, how they experienced the events, what was expected but did not happen, and what they are asking for today. The mediator helps maintain a respectful and structured conversation and replaces accusatory language with language of facts, needs and goals. Only at this stage, and not before, is the conflict opened in depth.

As the process continues, separate meetings with each side may be held, but only after the process has officially begun and solely for the purpose of deepening the understanding of boundaries, concerns and needs. The aim is not to “cut deals behind closed doors”, but to provide a space to process feelings and clarify what is important to bring back to the joint room.

Once a broader picture has been built, the parties and the mediator begin to explore possible solutions. In employment disputes, outcomes may include continued employment under new terms, a change of role or work structure, professional support, agreed termination of employment, definition of payments and rights, a reference letter, or any other arrangement that responds to the needs that emerged. The agreements are drafted clearly and precisely, and where appropriate can be given legal force.

The benefits of mediation for employees and employers

Employment dispute mediation saves time, money and emotional strain. Instead of spending energy on long formal proceedings, the parties can invest it in building a solution and moving on. In most cases, mediation is significantly shorter than litigation, with high control over who participates, when, where and what is discussed.

For employees, mediation provides a space in which they are not “just another case” but a whole person with a story, needs and aspirations. They can gain clarity regarding the options available to them, influence how the working relationship ends or continues and know they did not cut off contact before first trying to talk.

For employers, mediation offers a way to handle disputes responsibly and respectfully, maintain a healthy organizational culture, reduce reputational damage and learn from the process about possible shortcomings in management, communication or policy. Often this insight is invaluable in preventing future disputes and improving the workplace climate.

Beyond the practical advantages, mediation in employment disputes reinforces the message the organization sends to its employees: that it is possible to raise difficulties, talk about conflict and treat it seriously, without an automatic fear of punishment or labeling. This message strengthens commitment, loyalty and a sense of belonging.

Conclusion: a responsible way to deal with workplace conflict

An employment dispute does not have to end in silence, public shaming or a long legal battle. Employment dispute mediation – especially using the New Partnership method – offers a different path: to pause, talk, understand what truly matters to each side and build a solution that respects the person, the law and the organization.

If you are in the midst of a workplace conflict – as an employee, employer, workers’ committee or HR leader – mediation can be the tool that helps untie the knot, support clear decision-making and allow everyone involved to move forward.

Mediation can be conducted at our offices or entirely online, depending on your needs and the organization’s schedule.