Workplace mediation: resolving conflict early

Workplace mediation is a structured, confidential conversation between people in conflict at work, led by an impartial mediator. It can help colleagues, or a staff member and their manager, understand each other and agree on how they will work together.

Used early, it can stop tension turning into complaints, absence or resignations. This guide is for employers, HR teams and managers. It explains how the process works and when another approach is needed.

Why early conflict resolution matters

Disagreements are a normal part of working life. Some conflict can even lead to better ideas. Problems arise when conflict becomes personal, persistent or hostile.

Safe Work Australia’s model Code of Practice lists conflict or poor workplace relationships as a psychosocial hazard. WorkSafe Victoria’s compliance code lists poor workplace relationships too. Employers are expected to identify and manage this risk, just like other hazards.

Unresolved conflict can lead to:

• stress, anxiety and sleep problems for the people involved
• colleagues taking sides, and a team that stops sharing information
• more errors, sick leave and staff turnover
• formal grievances, bullying complaints and legal claims

Early action is usually easier, quicker and less damaging for everyone.

Early signs to watch for

• two people avoiding each other or communicating only by email
• tense or hostile exchanges in meetings
• colleagues complaining informally about the same working relationship
• someone asking to change shifts, desks or teams to avoid another person
• a drop in cooperation, such as information not being passed on

A first step for managers

Before mediation, a manager can often help by speaking with each person privately, listening without taking sides and asking what would help. Sometimes a clear decision about roles or processes resolves the problem. If the conflict continues, or feelings are running high, an impartial mediator may be more effective.

What is workplace mediation?

Workplace mediation brings the people in conflict together with an impartial mediator. The mediator does not decide who is right or hand down findings. They help the people involved:

• say what has been happening from their point of view
• hear and understand the other person’s perspective
• identify the issues that need to change
• agree practical steps for working together

Our general guide, what is mediation and how does it work, explains the core principles.

When workplace mediation can help

Mediation is often suitable for:

• ongoing tension or communication breakdown between colleagues
• disagreements about work practices, shared tasks or responsibilities
• clashes in working style, including between people from different backgrounds or with different communication preferences
• conflict between a manager and a team member, where both want to improve the relationship
• rebuilding relationships after a complaint has been dealt with through a formal process
• return to work after illness or injury, where the employer and worker need to agree on duties and support

For example, two team leaders who share responsibility for a roster might have fallen into a pattern of blaming each other for gaps, with their teams starting to take sides. In mediation, they could each explain the pressures they face, agree who owns which decisions, and set up a short weekly check-in. The aim is a workable arrangement, not a verdict on who was to blame.

For return to work after a workplace injury, mediation can support conversations about duties and support. It sits alongside, and does not replace, the obligations and dispute processes under your state’s workers compensation scheme.

When mediation is not the right tool

Mediation is not suitable for every workplace problem. A formal response is usually needed when a matter involves:

• sexual harassment or sexual assault
• violence, threats or serious aggression
• serious or repeated bullying allegations that need to be tested
• discrimination or victimisation
• serious misconduct, fraud or possible criminal behaviour
• a person who is frightened of the other, or where there is a large power imbalance

In these cases, a fair investigation comes first. WorkSafe Victoria’s guidance on managing reports of psychosocial hazards and incidents says investigations should be fair, timely and transparent, carried out by impartial investigators, and should consider psychological support for everyone involved.

Never pressure someone who has made a complaint to “sort it out” in mediation. That can cause further harm and may undermine trust in your processes.

Bullying and reasonable management action

The Fair Work Commission describes workplace bullying as repeated unreasonable behaviour towards a worker or group that creates a risk to health and safety. Workers covered by the national system can apply to the Commission for an order to stop bullying, and the Commission may try to resolve matters through mediation or a conference.

The Commission also notes that reasonable management action carried out in a reasonable manner, such as fair performance management, is not bullying.

How the process usually works

1. Referral. HR or a manager discusses mediation with the people involved and checks they are willing to take part.
2. Individual meetings. The mediator meets each person privately to understand their concerns, check suitability and explain the process.
3. Joint session. The mediator guides a structured conversation, with breaks and private sessions as needed.
4. Written agreement. If agreement is reached, the mediator helps the parties record practical commitments, such as how they will communicate or share tasks.
5. Follow up. A check-in after a few weeks helps keep the agreement on track.

Confidentiality and reporting

Agree at the outset what, if anything, will be reported back to the employer. Often it is limited to whether the parties took part and any actions they have agreed to share. Limits apply where there is a safety risk.

Internal or external mediator?

Trained internal staff can handle some low level conflicts. An external mediator is often better when the conflict involves senior staff, HR itself, or when people doubt anyone inside the organisation can be neutral. You can check accreditation on the national register of accredited mediators.

What employers can do to support success

• Make participation voluntary and allow it during paid work time.
• Make it clear there will be no disadvantage for taking part or declining.
• Offer access to support, such as your employee assistance program or counselling.
• Look at the bigger picture. If conflict stems from unclear roles, understaffing or poorly managed change, fix those causes as well.
• Build manager skills in having early, respectful conversations about conflict.
• Check in afterwards. Ask the people involved how things are going, and be ready to act if problems return.

How Invictus Health can help

Invictus Health offers workplace mediation, including mediation for return to work after injury, in person in Melbourne or online.

We also offer workplace programs, including leadership coaching and culture training, and counselling for individuals affected by workplace conflict.

This article is general information and not legal advice. For advice about your obligations, speak with a workplace lawyer or your WHS regulator.