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Resolving labor disputes through labor mediation

Resolving an employment dispute through mediation: often faster and cheaper than a lawsuit. Read how it works, what the costs are, and when it is suitable.

Published on June 24, 2026 by MKBjuristen.nl
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Employment mediation is a voluntary, confidential procedure in which an independent mediator helps the employer and employee resolve an employment dispute. Goal: return to work or a workable termination, without a court. Duration: 2–6 weeks for 3–6 sessions. Costs: €1,500 – €5,000 total (often split 50/50). Much cheaper and faster than subdistrict court proceedings (€5,000 – €20,000, 3–6 months) and preserves the working relationship where possible.

The short answer

  • Voluntary: both parties must agree.
  • Confidential: what is said in mediation stays there.
  • Mediator: independent, sworn third party — often MfN-registered.
  • Goal: solution by mutual agreement, not winning the legal battle.
  • Result: return to work, another position, or amicable termination.

When is mediation appropriate?

Employer and employee finalize a mediation agreement

Typical situations:

  • Disrupted employment relationship: conflicts between manager and employee.
  • Sickness absence with a conflict component: reintegration stalls due to mutual tension.
  • Unwanted behavior: bullying, intimidation, arguing about what is acceptable.
  • Performance review conflicts:disagreement regarding performance.
  • Preliminary negotiations for a settlement agreement: before a formal settlement agreement is reached.

Not suitable for serious misconduct (theft, violence) where the employer wants to dismiss immediately. However, always consider this before legal proceedings are initiated.

How does the process work?

  1. Choosing a mediator: preferably MfN-registered (Mediation Federation Netherlands).
  2. Intake interview: the mediator speaks with both parties separately.
  3. Signing mediation agreement: confidentiality, voluntariness, cost sharing.
  4. Joint conversations: 3–6 sessions, often 1.5–2 hours each.
  5. Record agreements: in a mediation agreement or settlement agreement.
  6. Implementation: meeting agreements, often with follow-up.

Pros and cons

Advantages:

  • Faster than right (2–6 weeks vs 3–6 months).
  • Cheaper (€1,500 – €5,000 vs €5,000 – €20,000 procedure).
  • Confidential — not a public procedure.
  • Maintain working relationship where possible.
  • Both parties actively involved in the solution.

Disadvantages:

  • Voluntary — doesn't work if one party isn't willing.
  • No legal ruling in case of deadlock.
  • The initial investment can feel like an extra cost.
  • Not all mediators are equally strong in employment mediation specifically.

The role of the company doctor

In cases of absenteeism involving a conflict component, the occupational physician may recommend or even prescribe mediation as part of the reintegration process. This often occurs in stalled Track 1 trajectories. The occupational physician is not a mediator themselves, but plays a role in the preliminary stages.

Mediation Agreement

Lady Justice — mediation as an alternative to a lawsuit

A good mediation agreement contains:

  • Subject of the mediation.
  • Voluntary participation of both parties.
  • Confidentiality (also towards the future judge).
  • Independence of the mediator.
  • Cost allocation — often 50/50.
  • Any cooling-off period and cancellation option.
  • Procedure for deadlock.

Costs and who pays

  • Mediator hourly rate: €150 – €350 per hour.
  • Complete process: € 1.500 – € 5.000.
  • Distribution: usually 50/50 employer–employee. In cases of unequal positions (small employee vs. large employer), sometimes the employer holds 100%.
  • Legal expenses insurance: often reimburses mediation costs.

Honest recommendation

For labor disputes without serious misconduct, mediation is almost always the smartest first step. It is faster, cheaper, more confidential, and offers a greater chance of a workable outcome. For employers dealing with absenteeism involving a conflict component: ask the company doctor to consider mediation. Finding a good MfN mediator is usually easy through professional associations.

For other routes: settlement agreement and dismissing an employee.

Frequently Asked Questions

What is workplace mediation?

A voluntary, confidential procedure in which an independent mediator helps the employer and employee resolve an employment dispute. Goal: return to work or workable termination without a court. Duration 2–6 weeks, costs €1,500 – €5,000 total.

When do you choose mediation?

In the event of a disrupted employment relationship, absenteeism with a conflict component, unwanted behavior, performance review conflicts, or preliminary negotiations for a settlement agreement. Not applicable in cases of serious misconduct where summary dismissal is appropriate.

Who chooses the mediator?

Both parties jointly. Preferably an MfN-registered mediator (Mediationfederatie Nederland) with experience in employment mediation. Lists are available through professional associations, your legal expenses insurance, or occupational health service.

How much does mediation cost?

Mediator hourly rate €150 – €350. Total process €1,500 – €5,000 for 3–6 sessions. Typically split 50/50 between employer and employee. Many legal expenses insurance policies cover mediation costs.

Is mediation confidential?

Yes. What is said in mediation stays there—even in front of a future judge. This encourages candid conversations. Conditions for confidentiality are set out in the mediation agreement.

What if mediation doesn't work?

Both parties can terminate the process at any time. Further options: settlement agreement, UWV procedure (in case of economic reasons or long-term illness), subdistrict court (other grounds). Nothing said during mediation can be used against you.

Can mediation be prescribed?

Mediation may be recommended by the company doctor as part of reintegration in cases of sickness absence involving a conflict component. Mediation may be proposed by a judge before or during proceedings. No one can be mandated — voluntariness is a core characteristic.

Please note: an article provides general information, but your legal situation may turn out differently.

A contract, conflict, or legal risk must always be assessed based on the facts, documents, evidentiary position, and interests. Are you in doubt? Have your situation assessed before you act.

Legal question regarding this article?

A blog provides explanation, but your situation often requires a concrete legal choice. MKB Juristen helps entrepreneurs with contracts, terms and conditions, GDPR documents, employment documents, disputes, and customized legal solutions.

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