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What is mediation and how does it work?

Mediation is a form of conflict resolution in which an impartial, independent mediator helps the parties reach an agreement together, without a judge. It is voluntary, confidential, and often cheaper and faster than litigation, and preserves the...

Published on 28 December 2021 by MKBjuristen.nl
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Mediation is a form of conflict resolution in which an impartial, independent mediator helps the parties reach an agreement together, without a judge. It is voluntary, confidential, and often cheaper and faster than litigation, while preserving the mutual relationship. You start with a mediation agreement (including best-effort obligations and confidentiality) and, upon success, conclude with a final agreement, which a judge can ratify if desired.

In the event of a conflict, you do not have to go to court immediately; mediation is often a good alternative, even for disputes with the government. We explain what it is, how the process works, and what it costs.

What is mediation?

In mediation, you present the dispute to an impartial third party who mediates, with the aim of finding a solution together without a lawsuit — only winners, no losers. A mediator often also possesses legal knowledge, provides impartial and independent advice, and — unlike a lawyer — does not work for one party. Because the discussions are voluntary and confidential and parties are free to contribute their ideas, it often yields quick results, usually at a lower cost than litigation.

For whom is mediation useful?

Mediation is particularly suitable when a good relationship is important — in family matters, but also in employment disputes or a dispute with a major client where you wish to maintain the working relationship. SMEs therefore benefit from it as well.

How does a mediation process work?

You usually start with a mediation agreement containing arrangements regarding the process. The parties undertake a best-efforts obligation (they make an effort to find a solution, without guaranteeing it) and typically a confidentiality obligation. Such agreements create trust and clarity — just like a good dispute resolution mechanism.

Agreements are also made regarding the costs, often split fifty-fifty. A process takes an average of two to eight hours and costs around 360 to 1,440 euros including VAT; rates vary per mediator. People with a low income can receive legal aid through the Legal Aid Board; a legal expenses insurer can also contribute.

If the mediation is successful, a final agreement containing the arrangements reached will follow, which a judge may ratify if desired. If it is unsuccessful, you may still submit the case to a judge or a dispute resolution committee.

Frequently Asked Questions

What is the difference between a mediator and a lawyer?

A lawyer represents the interests of one party; a mediator is impartial and helps both parties reach a solution together. Mediation is often cheaper and faster.

Is mediation binding?

Participation is voluntary, but the terms of the final agreement are binding. A judge may ratify them if desired, making them enforceable.

What if mediation fails?

In that case, no final agreement will be reached, and you may still submit the dispute to the court or a dispute resolution committee. The confidentiality of the process remains in effect.

Have a mediation agreement drafted

Making good agreements at the outset increases the chance of success. The legal experts at MKB Juristen will draft a mediation agreement for you. View our expertise in contract law or schedule an intake meeting .

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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SME Lawyers at the Chamber of Commerce Source: Chamber of Commerce 2019
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