Employer’s Guide to Employment Mediation
When workplace issues escalate, mediation can be an effective, confidential way to resolve them before they become costly, time-consuming, and damaging to relationships. At Knowhow, we regularly guide employers through the mediation process—sometimes representing you, sometimes coaching you through it—always with the goal of protecting your business and finding a commercially sensible solution.
What is Mediation?
Mediation is a voluntary, confidential process where an independent mediator helps you and the other party (an employee, former employee, or sometimes another employer) talk through the problem and work towards an agreed solution.
It’s not a courtroom battle—think of it as a structured conversation with a skilled facilitator.
Mediators from MBIE (Ministry of Business, Innovation & Employment) are neutral. They don’t take sides or make decisions unless both parties agree for them to do so.
When Should Employers Consider Mediation?
Mediation can be a smart move when:
An employment relationship problem isn’t resolving through internal conversations.
A personal grievance has been raised.
There’s a dispute over terms in the employment agreement.
Behavioural issues, performance concerns, or workplace changes have caused tension.
You want to avoid escalating to the Employment Relations Authority (ERA).
The Benefits of Mediation for Employers
Speed – Often scheduled within weeks, not months.
Cost-effectiveness – MBIE mediation is free; private mediation may have fees but is still cheaper than litigation.
Confidentiality – Discussions and settlements are private.
Control – You decide whether to agree to a settlement.
Relationship management – Reduces the risk of further damage to your workplace culture.
Preparing for Mediation – Your Employer Checklist
Before mediation day, make sure you:
Understand the issues – Summarise your case in writing, focusing on facts and dates.
Gather evidence – Bring key documents such as employment agreements, policies, letters, emails, and meeting notes.
Identify your desired outcomes – Know your bottom line, but also be open to compromise.
Plan your approach – Decide who will attend (you, a manager, HR representative, or legal advocate).
Anticipate the other side’s position – Consider what matters to them and possible solutions.
Pro tip from Knowhow: Clarity is your best tool. The better prepared you are, the more likely you’ll achieve a resolution that works for your business.
What Happens on the Day?
Private introductions – Each party meets separately with the mediator.
Joint discussion – If both sides agree, you’ll meet together to present your perspectives.
Facilitated negotiation – The mediator helps explore options and guide discussion.
Private sessions – You may break into separate rooms to explore solutions confidentially.
Settlement – If agreement is reached, it’s recorded as a legally binding Record of Settlement signed by all parties and the mediator.
After Mediation
If settlement is reached – The agreement is final, enforceable, and confidential. There’s no going back, so ensure you fully understand the terms before signing.
If no agreement is reached – You may consider ERA proceedings, private mediation, or further internal negotiations.
How Knowhow Can Help
We can:
Represent you at mediation to manage risk and protect your position.
Prepare all your documentation and evidence.
Coach you on what to say and how to say it.
Negotiate on your behalf.
Support you in meeting your legal obligations while safeguarding your business interests.
Mediation is about finding a workable way forward—not “winning” at all costs.
When handled well, it can save money, time, and workplace harmony. With Knowhow in your corner, you can approach mediation with confidence, clarity, and a clear plan for resolution.
Don’t go into mediation unprepared.
Contact Knowhow Today