Mediation - tool for prevention or dispute resolution in HR & business topics

Small local businesses or international corporations anywhere round the world, both face various tough situations, which might cause some serious consequences including litigation process. For this case, there is a great alternative of dispute resolution. It brings the chance to gain a very promising result, which respects both individual and common needs of both parties.

Mediation in the Czech Republic

The mediation as one of the strong and frequently used alternatives to the litigation or arbitration, is also promoted and legally regulated by local government. It secures a professional, safe and fast neutral way how the mediator guides both parties throughout the process to find the ideal solution to their business disputes. The first regulation is the international Directive 2008/52/EC of the European Parliament and of the Council on certain aspects of mediation in civil and commercial matters. The other regulation is the Mediation Act (Act No. 202/2012 Coll), which determines conditions of mediation process, forms of mediation agreements and requirements on the mediator qualifications, under which it is executed by the registered mediators. Mediators in the Czech Republic need to pass the exam with the Ministry of Justice to become registered and their quality is also supervised.

What is it all about - a managed process with essential principles

Mediation is based on a professional guidance by a trained mediator, who follows some strict rules and principles to keep the mediation process effective. Mediation offers a very secure, safe and discrete platform for both parties of conflict to listen to each other and to have the chance to speak about anything related to the issue arisen and finally to find the ideal solution if possible. Just to come up with mutually beneficial agreement, it is a matter of a long way from digging deeper in what has happened, what affects the presence and even the future. The mediator assists effectively during each stage of conflict resolution with the sense of future impact.

Local or international usage?

Mediation is applicable to various conflict resolution / dispute resolutions. It is more universal, no matter if used only for local or international issues. Also in the Czech republic, there is a reasonable increase of attention to this way of dispute resolution. The succession rate of business mediation to find the mutually acceptable solution is approximately 70-75%.

Examples of business mediation - efficacy in time, money and reputation

• Business issues (restructuring, mergers, acquisitions, intellectual property, conflicts with suppliers, vendors)
• Consumers' complaints
• Workplace & HR disputes (downsizing, team collaboration issues, hybrid working conditions, remote management, conflicts between a boss and subordinate etc)

All above mentioned areas can be affected by unrevealed interests, influence, politics or needs. Mediation offers sufficient and secure space to examine all hidden needs and also to calm down strong emotions in order to find mutually acceptable solutions.

People in their “frozen” positions don't even hear each other. Conflicts are full of massive emotions, different expectations and hidden interests. That is where mediation is a suitable tool to involve both parties, to let them discuss, make their own decisions and agreement consensually and the mediator remains as a guide and process manager. Mediation can help parties in comparison to litigation process to get to a faster solution, for less money while securing respect and keeping good reputation of both parties.

To sum it up, even Czech legislation offers the chance to solve business disputes in a smooth, effective way.