Unresolved workplace disputes cost your business money. Potential costs include legal expenses, lost productivity, staff turnover, lost business relationships and a damaged business reputation. Show Developing a clear conflict resolution process will help your business avoid unnecessary conflict and prevent unavoidable conflict from escalating. Best practice in dispute resolutionThe Fair Work Ombudsman's effective dispute resolution guide describes best practice principles for developing your business's dispute resolution process. The guide recommends pursuing dispute resolution outcomes that are:
Mediation and alternative dispute resolutionIf you are unable to resolve a workplace conflict, there are trained professionals who can advise and assist you. The Queensland Government's dispute resolution centres have trained mediators to help everyone involved in a workplace dispute reach a satisfying settlement. Mediation sessions are usually attended by 2 mediators who act as impartial third parties. Their role is to make sure all people involved in the dispute get the chance to make their point. Dispute resolution centres can also help your workplace develop systems that actively prevent or manage conflict. The Queensland Law Society also has a range of mediation and alternative dispute resolution services. Read how you can find a nationally accredited mediator. Access the Workplace Advice Service for free legal assistance on workplace issues involving dismissal, general protections or workplace bullying. Also consider...
Problems arise every day between businesses, their customers, suppliers and employees. Most of them are dealt with quickly and efficiently through common sense, but sometimes they turn into a dispute which needs further understanding to resolve it. In general, there are five steps to dispute resolution: Step 1. Understand the dispute Step 2. Talk to the other party Step 3. Write to the other party Step 4. Ask for help from a third party Step 5. Go to court
If you think something is unfair or not right, it is important to understand the problem and how it affects your relationship with the other party. This will help you to make informed decisions about the best way to resolve the dispute. How did the dispute arise?A good place to start is to ask yourself, how did the dispute arise? It can be helpful to write a list of the events leading up to the dispute and to highlight the key points. Check your facts
Identify the issuesWrite down the most important issues you need to resolve and put them in order of priority. It is also important to think about what the other party might identify as their key issues. Are there misunderstandings?Many disputes arise because of misunderstandings. Consider that there might be some facts, background or current circumstances you don’t know about that may have led to the issues. A conversation with the other party may clarify the issues and lead to a resolution. What are your priorities?Work out what is most important to you – Is it getting paid? Getting more work in the future? Or, finishing the job and moving on? Is there a primary issue that, if resolved, will also resolve a number of other concerns? Identify potential outcomesConsider what you know about the dispute and identify potential outcomes. Think about what you want to achieve and what you can realistically expect to achieve. Consider how this will impact on cash flow, time and resources, productivity, future business, and personal relationships. Reality checkTalk to someone outside the dispute, such as a trusted adviser. Do they agree with your position? Take time to consider what the other party may think of the situation, what their issues may be, what they may want to achieve, and if they will think your outcome is reasonable. Check your emotions – are you angry or disappointed? Could this be clouding your perspective? Download the checklist: Checklist – Understanding my dispute (PDF 379KB)
Now that you understand your dispute it is time to talk about it with the other party. If the issue is minor, a telephone conversation may be all that is needed, but for more complex disputes, a face-to-face meeting can be more successful. PrepareIt is important to prepare for your meeting by considering how your dispute starts, the key issues and the perspective of the other party. In your meeting stay calm, be professional and be prepared to negotiate and compromise. Make clear written notes about your discussions and any outcomes which were agreed. Be aware that problems are often caused by misunderstanding. Knowing what events led to the issues arising and discussing this with the other party may help to identify if there was a misunderstanding. Keep a recordMake clear, written notes outlining discussions and outcomes, and if possible, prepare an agreed record of the discussion at the end of the meeting. These notes may form part of your evidence if the dispute is not resolved and needs to be escalated.
If talking over the issue didn’t work, writing a polite and professional letter is the next step. Putting your concerns in writing provides the other party with a chance to fix the situation before further action is taken. It can also be used as evidence if the situation needs to be escalated. If your dispute is complex or writing isn’t your strong point, ask for help. Tips for writing a letter of concern:
Need more help? Download an example letter. Example letter of concern – XYZ Print & Design (PDF 309KB) Example letter of concern – XYZ Print & Design (DOCX 26KB) If you have tried unsuccessfully to get an invoice paid, a letter of demand might be your next option. A letter of demand is usually sent if you still have not received your payment after first and second reminder letters.
Alternative dispute resolution (ADR) is an alternative to going to court to resolve your dispute. ADR is generally quicker and cheaper than court and gives you more control over the outcome. Common types of ADR include facilitation, mediation and conciliation. The language used in dispute resolution can be confusing. The National Alternative Dispute Resolution Advisory Council has a glossary (PDF 517KB) that explains common terms used in dispute resolution in Australia. There are many dispute resolution services available to help resolve business disputes. Dispute Support is an online dispute resolution information and referral tool. It will help you to find the most appropriate low cost service to resolve your business dispute.
Taking the matter to court should be the last resort. Court is expensive, time consuming and the outcome is out of your control.
If you require further assistance, the Australian Small Business and Family Enterprise Ombudsman Information Line can provide information and assistance, including helping you to identify the most appropriate service to resolve your dispute. You can contact the Information Line on 1300 650 460. |