Mediation for small business disputes
Published on 09 July 2021
Liverpool Plains Shire Council (LPSC) Mayor, Councillor Doug Hawkins OAM, is reminding local businesses that the NSW Small Business Commission offers a cost-effective commercial mediation service to help solve many types of disputes without the high cost and delays inherent in going to court.
“The last few years have caused some tough times for small, local rural businesses. They’ve faced drought and now the impacts of COVID-19 lockdowns, border closures and other challenges and many small businesses can find themselves in dispute over a wide range of issues.
“Over this time, Council has worked closely with the NSW Small Business Commission to promote opportunities and assistance that is available to small business,” he said.
The Small Business Commission’s mediation service has proven to be very effective for many small businesses avoiding the need to go to court to resolve a dispute which is often costly and time consuming.
“Small businesses are increasingly turning to professional mediation to resolve business disputes. It’s usually cheaper and faster than going to court and is focused on finding a solution that all the parties to a dispute can agree to. In fact, of all the mediation matters filed with them, about 90% are resolved before the need for a court or tribunal to decide the matter,” he continued.
“Mediation is suitable for most types of business disputes. This includes disputes between lessors - property owners, or landlords - and lessees – tenants - of shops, restaurants, offices, and industrial or commercial premises, lease, license or contract disputes between small businesses and Government agencies, disagreements between contractors and subcontractors and franchise disputes,” he said.
“During mediation, a mediator helps the parties to understand the different perspectives in the dispute, and what is at stake. The parties will develop a better understanding of what might happen if the matter goes to court and be able to compare potential options for settlement. You can see a guide to your mediation on what to expect before, during and after mediation at https://www.smallbusiness.nsw.gov.au/get-help/disputes/guide-your-mediation.
If you have a question about mediation or a matter to raise with the Commissioner phone 1300 795 534, send a letter to PO Box W275 Parramatta NSW 2150 an online inquiry to https://www.smallbusiness.nsw.gov.au/contact-form#option-6,” he continued.
“There are costs involved with mediation although these are far lower than court costs. Small businesses can also take advantage of the NSW Government’s $1500 fee rebate scheme to assist with the costs of mediation. You can find out more about this option online at https://www.smallbusiness.nsw.gov.au/news/1500-small-business-rebate-scheme-opens,” he said.
“The mediator conducts mediation in accordance with the National Mediator Accreditation System standards. The Mediation Services team was named Australian Disputes Centre’s Alternative Dispute Resolution Practice Group of the Year 2019.
“For battling small businesses mediation is less expensive than going to court. When you combine the lower mediation fee and the fact that the process has a significantly lower turnaround time, this method may prove to be much better in solving disputes,” Councillor Hawkins concluded.
Media contact – Doug Hawkins 0448 092 932.