Why is “business mediation” the best solution for small businesses?
Small businesses must be scrupulous in their operations especially when they have success and want to expand. Therefore, they must be mindful of their resources. Conflicts and disputes may deplete these resources because litigation usually is very expensive and time-consuming. Business mediation is a good Alternative Dispute Resolution (ADR) method to resolve conflicts for small businesses allowing disputing parties to save time and costs.
Business mediation is an ADR method where disputing parties appoint a third person, called mediator, that facilitates them to reach a settlement agreement. This document shall be signed by all the disputing parties and it has a binding effect on them. Usually, with the help of an experienced mediator, disputing parties can settle their dispute after a few hearings.
Business mediation can be applied in different situations
Small business owners face potential conflicts and disputes dealing with other companies. These conflicts could be internal or external. The internal ones cover a wide range of personnel issues such as disputes between the management and employees or unjust termination of employment contracts. A business mediation proceeding conducted by a neutral third person helps to create a more relaxed and fairer atmosphere. This allows parties to discuss their issues that otherwise would not be possible during a court proceeding. Experience mediators could facilitate disputing parties in reaching an amicable solution, called settlement agreement.
The external conflicts instead are usually related to contracts with other companies such as vendors, suppliers or customers. Using business mediation before ending up in a court proceeding is a more suitable option to preserve business relationships. Moreover, in business mediation, contrary to a court proceeding, all information disclosed is confidential. It could also be used when a small business has to be restructured or dismantled, allowing parties to complete all the necessary steps in the most efficient and costs saving way.
What are the benefits of business mediation for small businesses?
Business mediation is a type of mediation focused on business issues. Mediation and other ADR methods offer many advantages over litigation. For instance, contrary to court hearings, the mediation hearings are private and disputing parties are required to sign a confidentiality agreement that covers all matters discussing during the mediation proceeding. Upon this confidentiality agreement, parties are free to discuss all their issues. Usually, a hearing lasts up to six hours, depending on the complexity of the matter in dispute it can take more. Furthermore, mediation costs much less than court litigation and allows parties to choose the mediator and the requirements this should possess. Mediators are skilled in facilitating discussion between disputing parties to reach a settlement agreement.
Mediation is also helpful because it could preserve relationships due to its non-litigation nature. Parties can explain their positions in a more relaxed context with the help of experienced mediators and find the most suitable solution to continue their business relationship.
Why is business mediation better than court litigation?
Small businesses could find in business mediation a better alternative than court litigation because it offers many advantages. First of all, business mediation saves time and cost. It is a simpler proceeding because it does not follow a specific ritual, disputing parties can discuss their issues with the help of the mediator, therefore it takes less time. Moreover, it does not require the presence of lawyers, although they can be appointed and participate in the proceeding, this contributes to reducing the costs.
Secondly, disputing parties can appoint the mediator and choose his field of expertise and other qualification he shall possess. Usually, judges in courts are not specialised in a particular subject therefore the mediator is in a better position to help parties with their dispute. Moreover, in mediation the outcome is an agreement decided by disputing parties and not a decision imposed by a third person such as a judge.
Lastly, court proceedings are public while mediation hearings are confidential therefore, more suitable to protect sensitive matters and information about the parties’ business. Parties cannot disclose anything they become aware during the mediation proceeding unless agreed otherwise.
THAC provides expert mediators
The Thailand Arbitration Center (THAC) is an institution that provides alternative dispute resolution services, including business mediation, for cross-border disputes. It offers high standard ADR services, including panels of experienced arbitrators and mediators, affordable administration fees and state-of-the-art facilities for in-person and remote hearings. The Thailand Arbitration Center is located in the heart of Bangkok (Phrom Phong BTS station) one of the most international and vibrant cities in South-East Asia. The THAC is easily accessible with its convenient locale in the vicinity of international airports. THAC mediators are expert and highly experienced in a wide range of matters. This allows parties to find the most suitable mediator for their needs. Small business owners considering settling a dispute by business mediation shall enquire with THAC.