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Mediation in the complaints procedure: Rethinking conflict management

  • November 16, 2025
  • Topic: News, Practical Guidance

Mediation in the complaints procedure: Rethinking conflict management

Wherever people work together, conflicts arise. In companies, they can provide valuable impetus or have a paralyzing effect if they remain unresolved. Intra-company disputes are particularly sensitive. They affect not only individual interests, but also the entire working atmosphere. An effective instrument for dealing with such conflicts constructively is an arbitration board, embedded in the statutory complaints procedure under the Works Constitution Act.

Complaints procedure as a bridge to mediation

The Works Constitution Act gives employees the opportunity to defend themselves against discrimination, unfair treatment or adverse effects. Whether it is incorrect grouping, unjustified warnings, bullying or conflicts over working conditions, all of this can be addressed via the complaints procedure.

It is worth noting that the law itself provides for a kind of mediative component. Employees may call in a member of the works council for “support and mediation”. This works council member does not act as a judge or lawyer, but as a neutral third party who paves the way to an amicable solution by conducting discussions and using negotiation techniques. This shows how closely the grievance procedure and mediation are linked.

The works council as mediator

Due to their proximity to the company, works councils are particularly suitable for moderating conflicts. They know the structures, the people involved and the operational background. At the same time, the law obliges them to remain neutral, as they should not act in a partisan manner, but rather have the good of the company as a whole in mind.

In practice, this means that if works councils are trained in mediation techniques, they can resolve internal conflicts efficiently and confidentially. The legal framework protects their independence and ensures that confidential information is not misused. Furthermore, there are no additional costs for employers, as the work of the works councils is borne by the company anyway.

From the individual solution to the system

In addition to the individual procedure, the Works Constitution Act also opens up the possibility of introducing a comprehensive internal conflict management system. Companies can stipulate how complaints are to be dealt with in a company agreement. From initial clarification by superiors to mediation and a company complaints office.

Such a multi-level system acts as an internal early warning and security system. Conflicts are identified at an early stage, dealt with in a structured manner and do not escalate unnecessarily. Depending on the design, external mediators can also be involved to further strengthen neutrality and professionalism.

Opportunities for companies

Mediation in the complaints procedure is far more than just a legal detail. It offers companies a strategic advantage. Costs are reduced because lengthy court proceedings are avoided. The corporate culture improves because conflicts are addressed openly and resolved constructively. Employees feel that they are taken seriously and protected, which increases motivation and loyalty. Mediation can also help to establish a new culture of conflict. Away from confrontation and towards cooperation. This not only promotes employee satisfaction, but also the company’s innovative strength.

Mediation as a building block of modern corporate management

The complaints procedure under the Works Constitution Act is not a bureaucratic formalism, but an opportunity. It allows conflicts to be transformed into a structured, mediation-like process that is fast, confidential and cost-effective. Companies that make use of these opportunities and integrate mediation firmly into their conflict management not only ensure social peace within the company, but also sustainable economic success.
At a time when staff retention, corporate culture and resilience are decisive factors, mediation is becoming a central component of modern corporate management.

AuthorOliver Boltze • CenaCom
Attorney-at-law and business mediator with a focus on compliance, anti-money laundering (AML), ESG, and sustainable corporate governance.

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