Who Pays For Mediation?
Who pays for mediation cost UK? We shall explore who is responsible for a mediators costs. How this will change depending upon what type of mediation you need. When payment needs to be made, and how.
The short answer is both / all parties pay equally towards the mediation cost. However, this would only apply in certain types of disputes, not in all. The following are all examples of when both parties would pay equally towards the cost of the mediator.
- A civil dispute – a consumer is suing a company for £3,000 for a defective wardrobe.
- A commercial dispute – a company is suing another company for £67,000 for a breach of contract, concerning haulage and late deliveries.
- A boundary dispute – neighbour one is in dispute with neighbour two, over their new extension, encroaching 11 inches onto their property.
- An employment dispute – an employee is claiming £22,000 against their previous employer for unfair dismissal.
- A family dispute – three siblings are in a probate dispute over their late cousins £500,000 estate.
- Divorce & separation – MIAMS are usually paid for equally, however depending upon your earnings, benefit entitlements, costs can be paid by legal aid, and or there is the £500 voucher mediation scheme.
Mediation Who Pays?
Therefore, if the mediators cost was a £1,000 and there were two parties to the dispute, then they would both have to pay £500 each. If the mediators cost were £2250 and there were three parties. Then all three would need to pay £750 each.
In my 24 years of mediating the majority of the 2000+ disputes I have mediated, both / all parties have paid equally towards my mediation fee. However, on a handful of occasions, less than 10 times, one party has refused to pay their share of the cost.
- Because they cannot afford to and or claim they cannot.
- Believe the other party are in the wrong, so why should they pay.
- Believe the other party brought a vexatious claim, so why should they pay.
- To derail the proceedings, stall the other party, hoping they will just go away.
In such situations, the other side has just paid the whole mediation fee. There was no obligation for them to do so, but just to get the mediation up and running they choose to.
Workplace Mediation Costs
Where an employer has a workplace, (not an employment dispute they are two different types of disputes). For example, a dispute between two employees or more over for example a personality clash, poor communication and productivity. Then the employer, the company, business, entity pay the whole mediation fee.
Why? Employers by law owe various duties of care towards their employees. If ever an employee took their employer to an employment tribunal, the employer would be asked if they had offered workplace mediation to resolve the issues. If they had not, they would find themselves in difficulty, unless they had a valid reason not to offer mediation.
Mediation Payment?
Regardless of what type of mediation you need, the mediator’s costs need to be paid in advance of the mediation. The mediator will send you an invoice with their payment terms and ways to pay. The majority of mediators accept payment by bank transfer; a handful also take cheque and or payment by a debit or credit card. Cash is generally not acceptable, however if a mediator does accept it, it can be no more than £1,000 to comply with money laundering regulations.
Do You Have To Pay For Mediation?
Who pays for mediation cost UK? You do. Do you have to pay? Yes you do! The same way as you would pay for any other goods, services and professional fees. If one side has paid and the other has not paid then the mediation will not go ahead until payment has been received by both. This is the stance most mediators take. Whereby the mediation will be cancelled and rescheduled for another date, and undertaken when payment has been received by all.
This varies slightly for workplace disputes as its just the employer making the payment. In essence payment is required upfront. However, bigger organisations do sometimes have complicated cost centres, supplier portals and the like where they have to set new suppliers up. Therefore sometimes payment may arrive after the actual mediation has taken place.
Who Pays For Mediation Cost UK? Conclusion
Who pays for mediation cost UK? Both / all the parties do, unless it is a workplace dispute. The type of dispute you have will dictate who has to pay for the mediation. Different mediators charge different fees, so be sure to shop around. Be clear on what you are getting and not getting within your quoted fee. Payment will need to be in advance to ensure your mediation goes ahead when scheduled.
Who Pays For Mediation Cost UK? FAQs
If your dispute is subject to court litigation, or ends up down the court route. As part of your claim, counter claim, you can ask that the other side refund the mediation fee you had to pay. It will be down to the Judges discretion if this is reasonable to do so or not.
If your mediation was scheduled for eight hours, and it ends within six hours, settled or not. Then you will not get a refund. Mediators calculate their fee and your mediation session lenght based on the type of disute you have and how complex it is. Therefore if it finishes early there usually is no refund.
No, because they quoted you based upon what you told them the dispute was about and the value in dispute. Providing nothing has chnaged then the fee you were quoted can be the only fee that would be payable.
However, if the parties have mistakenly, or deliberately misled the mediator as to the value of the dispute. Claimed it was a £25,000 dispute, when in reality it was a £90,000 dispute. Then the mediator is entitled to change their fee. The parties must agree to this, befofre the mediation commences / proceeds.
