How to resolve a business dispute
June 7, 2021

How to resolve a business dispute

Your options for resolving a dispute at work

When you become involved in a business dispute there’s a lot on the line. Handling a dispute like this can be costly to your business. When an issue isn’t resolved it can take a lot of time and money away from your business. There’s also the risk of damaging employee relationships. Businesses across many industries rely on building positive employee relationships for success. When these relationships break down, it can have a detrimental effect on your business.

With everything that’s at stake, it becomes essential for your business to settle a dispute as fast as possible. Taking a business dispute to court should be a last resort. Luckily there are many steps you and your employee can take to resolve a business dispute before it ends up in court.

Options for resolving a dispute

The way you resolve a dispute can depend on the outcome you’re looking to get. As an employee, you may want to preserve the business relationship you have with your employer. In this scenario, it’s worth aiming for an alternative dispute resolution (ADR). If you’re just looking to finish a contract and collect the money that’s owed to you, using a debt collection may be a better option. As a last resort, you can use the services of a Business Dispute Lawyer to help you take the matter to court.

Here are some common examples of actions you can take to resolve a business dispute:

  • Use a debt collection agency
  • Alternative dispute resolution (ADR)
  • Go to court with a Business Dispute Lawyer
  • Sending a letter of demand to your employer
  • Taking the dispute to a tribunal or court

Alternative dispute resolution (ADR)

Ask any Business Dispute Lawyer and they will recommend that an ADR is one of the best ways to settle a dispute without it going to court. This process usually involves bringing in someone impartial. This person acts as a mediator to help both sides discuss and resolve the issue that the business dispute is based around.

An ADR is commonly used to resolve a dispute before it becomes big enough for a court or tribunal to get involved. But there are no strict rules on when an ADR can be used. You and your employer could decide to use an ADR before, during or after a court process. If you are having issues organising an ADR, a court or tribunal can assist with this process too. Some courts and tribunals also make it compulsory for a dispute to go through a process of ADR before the matter is approached in a hearing.

There are many advantages to undertaking an ADR. Here are a few to consider:

  • Enables more creative solutions to be used
  • The process can be flexible, informal and confidential
  • Both parties in the dispute have more control over the process
  • A great way for both parties to preserve a business relationship
  • Can help narrow the scope of issues that both parties want to bring up

The mediation process

Mediation is one of the most common forms of ADR. The process is confidential and requires an independent mediator to be present. This is a role that Business Dispute Lawyers in Melbourne would not be able to assist you with. In this scenario, it’s the mediator’s responsibility to listen to each party involved in the dispute. They decide whether or not further mediation is appropriate for the dispute in question.

During the mediation process, both sides should aim to reach an agreement or a solution that both can move forward with. Initially, the mediator will decide on the mediation process to be used. It’s then up to both parties to decide on what issue they want to discuss.

Here’s a few examples of what both parties aim to achieve during a mediation:

  • Identify the issues being disputed
  • Both parties develop options for a resolution
  • Consider any alternatives brought up by one another
  • Parties will aim to reach an agreement if it’s deemed appropriate

ADR costs to consider

As we mentioned earlier, the costs of a business dispute can really start to add up. That’s why it’s always best to resolve things fast and avoid taking the matter to court. Going through the process of ADR does come with its costs too. But these ADR costs can pale in comparison to court fees. Many factors that can influence your ADR fees. Consider these while weighing up the costs:

  • Experience of the independent mediator
  • The complexity of the dispute and issue with the contract
  • The state you live in along with its subsequent laws

Breaking down the costs of an ADR

Here are a few examples of the fees that may be associated with an alternative dispute resolution. Most of these expenses are involved with the logistics of setting up the ADR session.

  • Practitioner’s fees
  • Travel expenses
  • Room hire fees
  • Document printing

Looking for more advice on Business disputes?

Here at P&B Law, our Business Dispute Lawyers in Melbourne are well versed in the area of business law in Australia. They can provide you with the essential legal advice you need to help navigate you through a business dispute. With your best interests in mind, our Business Dispute Lawyer can advise you on the best course of action whether you are representing your business or your own interests as an employee.

We believe there is always a great solution for resolving a business dispute. It just takes the right legal minds and strategy to achieve the outcome you desire. Contact us on 1300 526 246 to discuss your business dispute and see what options are available.