Employment Disputes, Mediation, and What If It Ends Up in Court?

·12 min read
Employment Disputes, Mediation, and What If It Ends Up in Court?

Facing a workplace dispute? Mediation can prevent dismissal. Learn how mediation works, what your rights are, and when the court may intervene.

A labor dispute mediation process can prevent a great deal of misery. Conflicts in the workplace occur more often than people think — between colleagues, supervisors, or due to prolonged stress. The question is: do you choose to restore the relationship through mediation, or does the conflict end up before the subdistrict court? The employment law attorneys at Arslan Advocaten explain how to resolve a labor dispute, what your rights are, and what happens when mediation fails.

What is a labor dispute?

A labor dispute arises when the working relationship between employee and employer becomes seriously disrupted. This can result from disagreements about performance, workload, illness, or reorganization. Sometimes a situation even arises in which one of the parties can no longer work with the other.

When is mediation suitable for a labor dispute?

Mediation is suitable in virtually all phases of a labor dispute. It can offer a solution when the interests and options of both parties are unclear, or when people think all options have been exhausted. By engaging an independent mediator, clarity about the underlying interests and the room for a solution often quickly emerges. During the mediation process, the interests and wishes of both parties are openly laid on the table. This makes it clear whether there are still workable options. Sometimes this means the parties continue together; in other cases, they decide in mutual consultation to part ways. In both scenarios, the mediation is successful: the most important thing is that the solution is reached jointly, voluntarily, and with mutual understanding. Note: mediation requires a willingness to give and take. If one or both parties are not open to dialogue and compromise, mediation is usually not effective, and court proceedings may still be necessary.

Advantages of mediation in labor disputes

  • Faster clarity: Parties quickly know where they stand.
  • Lower costs: Mediation is generally cheaper than court proceedings.
  • More control and involvement: You work together on a solution that is acceptable to both parties, instead of a decision imposed from the outside.
  • Preserving the relationship (if desired): Mediation offers room to continue together, but also to part ways amicably if that is better.
This way you avoid prolonged stress and unnecessary escalation — and you retain as much control as possible. A labor dispute does not have to lead directly to dismissal, but it can result in prolonged tensions or sick leave. That is why it is important to take timely action.

The role of mediation in labor disputes

Mediation is a form of dispute resolution in which an independent mediator helps both parties reach a solution. The goal is not to determine who is right, but to restore communication and make agreements that allow both parties to move forward.

How do you start a mediation process?

If you want to start mediation, the process begins with a joint decision by the employer and employee. Both parties then look for an independent mediator, often affiliated with a professional organization such as the NMv (https://www.mediatorsvereniging.nl/) or the MfN (https://mfnregister.nl/). The procedure usually goes as follows:
  • Joint selection of a mediator. Both parties must have confidence in the person who will facilitate the conversation.
  • Agreeing on practical matters. Think of dates, location, and any special circumstances.
  • Drawing up a mediation agreement. In this document, parties record agreements about confidentiality and voluntariness: everything discussed remains behind closed doors.
  • Start of conversations. The process begins as soon as the agreement is signed, unless otherwise agreed.
These clear agreements form the basis for open conversations and increase the chances of a lasting solution.

Who is present during mediation?

Only the involved parties who have a direct interest in the conflict sit at the mediation table, such as the employee and the employer. They may be assisted by, for example, a lawyer, trade union representative, or confidential counselor. If you actually want to be represented (and thus not speak for yourself), a written power of attorney is required. Sometimes the mediator explicitly requests this. If both sides want additional people to join — such as an HR advisor or company doctor — this is only possible if everyone agrees to it in advance. The principle: as few people as possible, so that the conversation remains open and safe.

Different forms of mediation

Mediation comes in various forms, depending on the situation and preferences of the parties involved. In addition to the common workplace mediation, there are some special variants that are increasingly being used. Peer mediation In peer mediation, colleagues or peers act as mediators. Especially in educational environments, schools are increasingly choosing this approach: students resolve conflicts together with the help of carefully trained fellow students as mediators. Peer mediation can also be useful in organizations, for example when dealing with workplace friction that benefits from confidential, accessible mediation by a like-minded person. Online mediation In our digital world, mediation increasingly takes place entirely online. The conversations are conducted via secure online platforms, with the mediator guiding the process without physical contact. This is helpful when parties cannot or do not want to be in one location, or when face-to-face meetings are sensitive due to emotion or distance. Online mediation makes it easier to express positions in writing, respond at your own pace, and still work toward a solution acceptable to both sides. These modern forms of mediation can resolve a labor dispute more easily and quickly, provided both parties are willing to participate in the process.

Advantages of mediation

  • Prevents escalation and legal proceedings;
  • Offers room for restoring trust;
  • Can lead to agreements about returning to work or termination;
  • Saves time, money, and stress.
During mediation, both parties sign a mediation agreement with arrangements about confidentiality and voluntariness. Everything discussed during the sessions remains confidential and may not be used in court proceedings.

What happens to agreements made if mediation ends prematurely?

When the mediation process is terminated prematurely — whether at the initiative of one of the parties or on the advice of the mediator — this in principle does not result in any further obligations. Everything discussed in the sessions remains confidential and may not be used outside the mediation. If the parties cannot reach an agreement, the obligations arising from the mediation end. Note: if you did record concrete agreements in a signed document during the mediation, these remain binding. Think of agreements about returning to work, confidentiality, or compensation. Only written and signed agreements retain their force, even if the rest of the mediation process is terminated. Verbal commitments without a signature are not enforceable.

Agreements on costs and fees in the mediation agreement

The mediation agreement includes clear arrangements about the mediator's fee and how costs are divided. Usually both parties each pay half of the costs, but other arrangements can also be agreed upon, such as full payment by the employer. In addition, the agreement specifies what exactly is covered by the hourly rate and how the payment obligation works, even when mediation does not lead to a solution. This way, all parties involved know in advance what to expect financially, with no surprises afterward.

Exceptions to confidentiality in mediation

Although confidentiality is an important principle in mediation, there are some exceptions where information may or even must be shared. In the following cases, the duty of confidentiality may lapse:
  • Threat of a criminal offense: If one of the parties indicates during mediation that a crime or serious danger is involved, the mediator may be obliged to share this information with the appropriate authorities.
  • Complaint or liability proceedings against the mediator: If someone initiates a complaint or disciplinary case against the mediator, the mediator may use relevant documents from the mediation process to defend themselves. For other parties involved, this exception is more limited: their confidentiality may only be breached if it is truly necessary to handle the complaint.
  • Legal duty or right to report: In some situations, the law requires that certain matters be reported, for example in cases of suspected criminal offenses.
  • Supervision by certified bodies: When a recognized organization such as the Mediators Federation Netherlands (MfN) requests it for quality assurance purposes, the mediator may provide anonymized documents. The body must also maintain confidentiality.
In all other cases, the confidentiality of mediation sessions remains the norm: what is discussed at the table does not leave the room.

How long does confidentiality last after mediation?

The confidentiality of mediation sessions does not end when the process concludes. Everything discussed during mediation remains strictly confidential — even if parties stop prematurely or conclude the process with an agreement. This confidentiality therefore remains in effect, regardless of the outcome of the mediation. What was discussed may not subsequently appear in court or be used in other proceedings.

Can parties be represented or advised during mediation?

During mediation, only those directly involved may participate: the employer, the employee, and possibly someone who speaks on their behalf. Do you want to be assisted by, for example, a lawyer, trade union representative, or confidential counselor? That is possible, but usually requires the consent of the other party. The mediator may also ask for a written power of attorney if you are officially being represented. The principle is that all those present at the conversation have a clear interest in the conflict. Additional participants are only admitted after consultation and consent of all parties involved, so that confidentiality and openness within the mediation are safeguarded.

When is mediation mandatory?

The law does not require mediation, but judges and the UWV do expect parties to first try to resolve a conflict before initiating proceedings. Especially in the case of a labor dispute during illness, there is an obligation to cooperate with reintegration. Mediation can be part of this.

What if mediation fails?

If mediation does not produce results, there are two options: termination of the employment by mutual consent or through the subdistrict court. In the case of termination by mutual agreement, a settlement agreement is usually drawn up with arrangements about the transition payment, notice period, and reference. If a joint solution is not reached, the mediation can be formally terminated in various ways. The mediator draws up an agreement based on the points discussed and agreements made after the conclusion of the sessions. After signing this agreement, the mediation process is completed and both parties are bound by the agreements. Sometimes the mediator engages an external expert to ensure that the agreements are recorded clearly and correctly. The mediation process can also end prematurely when the mediator declares in writing that the consultation has been terminated, or when one of the parties notifies the other party and the mediator of termination. In that case, no further obligations arise from the mediation process, unless explicit agreements have been made and recorded in writing in the interim. These then do remain in effect. Important to know: the duty of confidentiality remains fully in force, whether the mediation process ends with or without an agreement. What was discussed during the sessions remains confidential and may not be used in any proceedings. If it is not possible to reach an agreement together, the employer can file a request for dissolution of the employment contract with the subdistrict court on the grounds of a disrupted employment relationship.

Dissolution due to a disrupted employment relationship

The court can dissolve an employment contract on the basis of Article 7:669(3)(g) of the Dutch Civil Code: a seriously and permanently disrupted employment relationship. In doing so, the court considers whether sufficient attempts have first been made to restore the relationship, for example through mediation. If those attempts have been insufficient, the dissolution may be refused.

Example from case law

An employee became ill after a conflict with his supervisor. The employer requested dissolution on the grounds of a disrupted employment relationship. The subdistrict court rejected the request because the employer had not offered mediation. Only after mediation had failed could dismissal be considered.

Rights and obligations of the parties

For employees

  • You must cooperate with reasonable attempts at resolution, such as mediation;
  • You may not simply refuse to participate without good reason;
  • In the event of suspension, you retain the right to salary.

For employers

  • You must seriously offer mediation in the event of a labor dispute;
  • You may only file a dissolution request if restoration is not possible;
  • You must take reasonableness and fairness into account when terminating the employment.

Labor dispute and illness: double complexity

A labor dispute often coincides with illness or burnout symptoms. In such situations, the normal rules about dismissal during illness and the employer's duty of care apply. The company doctor may recommend mediation as part of the recovery process.

What happens at the subdistrict court?

If mediation fails, the subdistrict court assesses whether the employment contract should be dissolved. The court considers:
  • The severity and duration of the conflict;
  • The attempts made to achieve resolution;
  • The attitude of both parties during mediation;
  • The possibility of reassignment to a different position.
Upon dissolution, the employee usually receives a transition payment. Only in cases of seriously culpable conduct by the employee does this right lapse. If it is the employer who is seriously culpable, the employee may receive a fair compensation.

Frequently asked questions about labor disputes and mediation

Am I obliged to participate in mediation?

No, but refusing without good reason can have negative consequences, for example in proceedings about dismissal or continued salary payment.

What does mediation cost?

The costs are usually shared between employer and employee. In the case of internal mediation, the company itself may bear the costs.

Can I be dismissed during mediation?

In principle, no. Mediation is intended to reach a solution. Only in cases of serious misconduct can an employer consider summary dismissal.

What if mediation fails?

Then you can initiate proceedings through the subdistrict court or the UWV. Have yourself advised by an employment law attorney.

Arslan Advocaten helps with labor disputes and mediation

The employment law specialists at Arslan Advocaten guide both employers and employees through labor disputes, mediation processes, and proceedings before the subdistrict court. We help prevent escalation and provide support with termination agreements or restoration of working relationships. Contact us for immediate legal advice.

Frequently asked questions

Wat zijn mijn rechten bij ontslag?
Bij ontslag heeft u mogelijk recht op een transitievergoeding, een correcte opzegtermijn en in sommige gevallen een billijke vergoeding. Teken nooit zomaar een vaststellingsovereenkomst zonder juridisch advies.
Kan mijn werkgever mij zomaar ontslaan?
Nee, uw werkgever moet een geldige reden hebben en de juiste procedure volgen. Bij een vast contract is toestemming van het UWV of de kantonrechter vereist, tenzij u instemt met een vaststellingsovereenkomst.
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