Mediation and settlement

Mediation and settlement

120px-ivy_mike_-_mushroom_cloudAs least in the minds of some, the announcement that the Government will be taking steps to regulate employee advocates came as something of a surprise.  Not so much to members of the employment law community, however. 

In distinction to most other jurisdictions, employment law allows – people who are not qualified as lawyers to act as counsel in a legal forum.  The practice probably has its origins in the union movement several decades ago – where union advocates were legitimately skilled in advancing points on behalf of their unions – but weren’t necessarily legally qualified. 

What has arisen over the last decade, however, is a more concerning practice – where non-legally qualified advocates act for employee complainants – often on a “no win no fee” basis. 

Lawyers are constrained in their ability to act on contingency fee arrangements – and, amongst other things, are ethically prevented from drumming up litigation where to do so is irresponsible. 

The same constraints are not placed upon advocates, however, and there is a view (at least held by a number of lawyers) that, in this way, advocates are bad for the employment law system. 

In my view, advocates have a legitimate place to play in the employment law jurisdiction – and those of them who act responsibly should have no fear about the introduction of regulation to control their behaviour. 

It would seem, however, that the Government has a view that the actions of some require limitation and control. 

dollarSee if you relate to this scenario. 

You go to mediation, present a carefully thought out opening, and listen assiduously to your opponent’s response. 

Then – before you have even had a chance to go and get a cup of coffee – the mediator walks into your room and tells you that the other side will only settle for a six figure sum. 

Six figures, you say!  What an outrageous and exorbitant claim!  That can never be justified, and we will never pay! 

Sound familiar? 

Well, for anyone who has studied the art of mediation, this is hardly “Getting to Yes”.  For most seasoned employment lawyers, it is also unlikely to be the way that the game is played. 

But an article this week on Work Matters lends an interesting perspective.  The outrageous demand at the outset of mediation may, in fact, be an attempt to “anchor” negotiations at a high level, re-framing the second phase of mediation so that it is all around the claimant’s admittedly outrageous demand. 

For example, after an hour or so of shuttling, if the mediator comes back and says that the claimant has dropped their outrageous claim by $20,000 – that’s a 20% reduction!  Already, they have comprised by one-fifth of what they were seeking before they came here – so now you have to move from your hardened position!
This is not the way that I would recommend parties to act in mediation – but it is an interesting perspective – and one which may stimulate a few comments.

justiceSomething we hear a lot in our employment law (and, indeed, in most areas of litigation) is that, in any particular case, one party “won” and the other “lost”.
This concept – of winning and losing – implies a competition of merits or might in which one party triumphs over the other.
Many people who have been litigants to employment litigation, however, will tell you that even when winning a case they don’t necessarily feel like “winners”.  Some are cynical enough to say that lawyers are the only true “winners” in any litigation (because, win or lose, they get paid).

Read the rest of this entry »

cazxph4ucac7dgmfcaegbpwacaxpw1g1cagh1wj0cak7vbw5cat031f1ca0ozrbcca1tftz2cajfcrr4cafx0323cavfhv0sca4v7mvucao1ife7caq9txkucamwxguncaa7c4y8ca0qs6h0ca3sh312It’s a phrase we’re used to hearing in mediation when an employee agrees to exit, but wants to advantage him or herself in finding their next role : better to be in a job when trying to find a new job.
And according to this interesting article from the Wall Street Journal, there may be real merit in the adage.  It seems that employers are showing a bias towards hiring employed workers, rather than those who may have been laid off due to tough economic times.
It’s certainly an interesting premise : would you prefer a job candidate who comes to you in an existing role, or would pure ability and competence (as opposed to employment status) win the day?
On a related note, an interesting article today about Kiwis losing their jobs in Australia, and the dificulty faced by some in finding alternative work across the Tasman.

77006501As a general rule, litigation before the Employment Court has been in the decline over recent years.

A recent change, however, may alter the way in which the Court involves itself in employment problems:  the judicial settlement conference. Read the rest of this entry »

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