Case study: How mediation helped resolve Employment Tribunal claim
The challenge
Our client contacted us after a former employee brought claims of race and disability discrimination.
The claimant's schedule of loss totalled around £89,000, creating significant financial exposure and the potential for reputational damage if the case was unsuccessful.
Unless the matter could be resolved, the organisation faced a six-day Employment Tribunal hearing, along with the legal costs, management time and uncertainty that come with defending a complex discrimination claim.
How we helped
The case was referred to a judicial mediation, known as a Dispute Resolution Appointment, where an Employment Judge acts as an independent mediator to help both parties explore the possibility of reaching a settlement.
We prepared the client for every stage of the mediation, explaining the process, developing a clear settlement strategy, preparing the supporting documents and drafting the client's position statement.
During the mediation, we represented the client throughout the negotiations, advising on each development as discussions progressed and helping them make informed decisions at every stage. Once an agreement had been reached, we drafted the settlement agreement.
The outcome
Before the mediation, the client had agreed a maximum settlement figure of £6,000.
By the end of the mediation, the claimant had reduced their position from £89,000 to £14,000, while the client's offer had increased to £8,000. A few days later, both parties agreed a final settlement of £9,000.
Just as importantly, the settlement meant a key witness did not have to give evidence, removing one of the client's biggest concerns and avoiding the uncertainty of a lengthy tribunal hearing.
By settling the claim before it reached a full hearing, the client also avoided more than £30,000 in estimated barrister's fees, as well as the management time involved in preparing for and attending a six-day tribunal.
The impact
- Claim settled for around 10% of the original value.
- More than £30,000 saved in estimated barrister's fees.
- Avoided a six-day Employment Tribunal hearing.
- Protected valuable management time.
- Reached a commercial settlement within days of mediation.
Lessons for employers
Although the client believed it had a strong defence, this case demonstrated the value of mediation, even when both sides begin a long way apart.
With the right preparation, experienced legal support and an independent mediator helping both parties explore their options, it was possible to reach a practical commercial agreement without the cost, uncertainty and disruption of a full tribunal hearing.
Following this experience, the client has decided it will actively consider mediation in future Employment Tribunal cases, even where settlement initially appears unlikely.
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