Dealing with Workplace Conflict

May 29, 2025

Disagreements and personality clashes may be a normal part of life, but ignore them at your peril! Left unchecked, minor niggles can rapidly escalate into outright conflict. You need to be ready to intervene, but how?

Informal internal processes – initial approach for minor, straightforward issues
Formal processes e.g. disciplinary/ grievance/ performance management – can consume vast amounts of management time and rarely lead to happy outcomes – ACAS say they “should be the exception rather than the rule.”¹
Mediation – can offer rapid, cost-effective resolution allowing people to rebuild positive working relationships
Negotiated settlement to remove one party

There’s no ‘one size fits all’ solution, so think about what might work best before you act.

Informal Resolution

Consider:

Is the situation suitable for informal resolution?
Who is the best person to intervene?
Do they have the skills and knowledge?

What do you need to do?

Intervene promptly…
…but avoid acting in the heat of the moment.
If you can, prepare what you want to do & say.
Choose an appropriate time to speak to the people involved.
Usually do this individually in the first instance.
Keep an open mind – question the information you have, try not to make assumptions.
Ask open questions to explore the issues
LISTEN!!

Next stage

Consider what you’ve heard.
Is there a simple solution? Eg clarifying job roles or responsibilities.
Does someone need to apologise?
Has anything come up that needs a more formal process?
Do you feel able to deal with the next stage?

Resolution

Bring the two sides together.
Facilitate a conversation between them and/ or outline what you feel needs to happen.
Try to get agreement from both sides on the way forward.
How will they/ you deal with any further problems?

Informal resolution – the pro’s 👍

No specialist resources required.
Only costs are management time.
Can be a rapid solution to a problem.
Maintains friendly relationships (sometimes!)

Informal resolution – the con’s 👎

Reluctance/ inexperience of managers to handle the conversation.
Can be a short-term, superficial ‘fix’.
May leave deeper issues unresolved.

Formal Procedures

ACAS say “Our analysis shows that formal procedures are associated with high levels of resignation, dismissals and sickness absence. Therefore, they should be the exception rather than the rule.”¹

Sometimes, however, they can’t be avoided. If someone raises a formal grievance then you have to deal with it! Likewise, sometimes misconduct is too serious to deal with informally, for example many cases involving bullying or harassment.

Process

Make sure you follow the ACAS Code²
And your own policies/ procedures
Get advice unless you’re very confident – it’s really easy to make a mistake
Remember the right to be accompanied to a hearing
And to an appeal against any sanction (try to keep someone senior out of the initial process ready to conduct this if needed)
Consider suspension on full pay if necessary (it helps if you have a suspension clause in your contracts).

Formal procedures – the pro’s 👍

Can usually be managed ‘in-house’.
Done properly can be a relatively safe way forward.
Visible process, people can see action is being taken.

Formal procedures – the con’s 👎

Time-consuming for managers/ HR
Can be complex and difficult to get right
Can ‘drag in’ more team members eg as witnesses
There’s rarely a positive outcome from formal processes – at least one party is left unhappy, often neither is entirely satisfied.

Mediation

Aims for a win-win outcome.
Allows people to rebuild positive working relationships.
“…comparisons with conventional disciplinary and grievance procedures in the UK suggest it uses fewer organisational resources and is more likely to preserve and repair employment relationships”³
“Nearly three-quarters of those who underwent mediation (74%) also reported that their conflict had been fully or largely resolved”¹
Fundamentally, most people in conflict are trying to meet their emotional needs.
They are often hurt or scared.
They almost certainly won’t admit that to you… or even to themselves.

About Mediation

Must be voluntary.
Confidential – nothing is shared without the consent of both parties.
Not legally binding.
Can be a very fast and cost-effective way to resolve disputes.

The Mediation Process

The Individual sessions
Mediator meets with each party to explore what they feel the issues are.
Can be done remotely or face to face
Explain the ground rules of mediation.
Long process – building trust and getting below the surface.
The Joint Session
Usually a day or two after the individual sessions.
Ideally face to face, though remote is possible.
Mediator facilitates the conversation as both sides explore their version of the issues.
As the two parties begin to understand each other, they can see the other perspective.
The conversation is then guided towards them deciding on ways forward.
They come up with the solutions to their issues.

Mediation – the pro’s 👍

Fast & cost-effective.
Win-win outcome means both sides ‘bought into’ the resolution.
Maintains, and frequently improves, working relationships.

Mediation – the con’s 👎

Requires both parties to agree to participate.
Involves some costs to the business.
It may not work, leaving you faced with formal options.

To learn more about mediation, including a case study, click here.

Negotiated Settlement

Sometimes working relationships have broken down beyond repair.
A settlement agreement is a legally-binding way to end employment.
You pay the employee an agreed amount in exchange for them giving up any right to bring a tribunal claim against you.
Often includes an agreed reference.
Do not do this on your own!
The employee MUST get legal advice from an approved person.
The employer pays an agreed amount towards this (usually £500 – £750).
Invite the employee to a ‘protected conversation’.
Make an initial offer.
Allow the employee to remain off work on full pay while they consider – ten days is usually the minimum time suggested.
Advise them of the need to seek legal advice & how much you will pay towards it.
Consider who will negotiate with their solicitor?

Settlement Agreements – the pro’s 👍

Rapid exit of an employee who needs to go.
Relatively safe from an employment law point of view.
Consider the cost against the cost of not tackling the situation…
…and the management time and stress avoided by not following a full disciplinary process.

Settlement Agreements – the con’s 👎

Danger of loss of protected status eg if potential discrimination.
You push them into the arms of a solicitor, who will try to inflate the payment.
Cost – it helps to have a ‘fighting fund’.
The employee does not have to agree to take part in any discussions, so you may need a Plan B.

Remember!

Conflict is a normal part of working life!
DO NOT ignore early signs of problems.
Consider your options.
Take advice.
Act decisively.
Have a Plan B.

Please note – the information in this article is for guidance only and is not a substitute for specific legal advice.

¹ACAS (11 May 2021) Estimating the cost of workplace conflict https://www.acas.org.uk/estimating-the-costs-of-workplace-conflict-report

²ACAS Code of Practice Disciplinary and Grievance Procedures https://www.acas.org.uk/acas-code-of-practice-for-disciplinary-and-grievance-procedures/html

³ACAS (17 May 2023) Mediation and early resolution in East Lancashire Hospitals NHS Trust. https://www.acas.org.uk/early-resolution-in-east-lancs-hospitals-NHS-trust/html

Employment Law