Conflict in the workplace is inevitable. Whether it’s a clash of personalities, a misunderstanding over responsibilities or a disagreement about performance, tensions can arise in any team. However, the way that employers handle these situations can make all the difference. 

Understanding the distinction between conflict avoidance and dispute resolution is key to maintaining a productive, legally compliant and harmonious workplace.  

What’s the difference between conflict avoidance and dispute resolution?

Conflict Avoidance is a proactive strategy, involving creating an environment where issues are less likely to arise in the first place. The strategy will include setting clear expectations, fostering open communication and promoting a positive workplace culture. 

Dispute Resolution, on the other hand, is reactive. It refers to the processes used to address and resolve conflicts once they’ve occurred. This can range from informal chats to formal grievance procedures or even employment tribunals. 

The legal framework

Several key pieces of legislation and guidance shape how employers should manage workplace conflict: 

  • Employment Rights Act 1996: this protects employees from unfair dismissal and outlines grievance procedures. 
  • Equality Act 2010: this prohibits discrimination based on protected characteristics (e.g. age, race, sex). 
  • ACAS Code of Practice on Disciplinary and Grievance Procedures: This isn’t legally binding but employment tribunals will look to it when assessing whether an employer acted reasonably.
  • GOV.UK Guidance: This offers practical advice on resolving workplace disputes through informal discussions, mediation or formal procedures.

Conflict Avoidance – the proactive approach 

1. Create a culture of openness 

Encourage employees to speak up early. Make it clear that concerns will be taken seriously and handled confidentially. 

Regular one-to-ones and anonymous feedback tools can help to defuse issues before they escalate. 

2. Train managers in conflict management 

It shouldn’t be assumed that line managers automatically have the skills they need to spot early signs of conflict and handle difficult conversations constructively. They need training in conflict management, including unconscious bias, active listening and emotional intelligence, amongst others. 

3. Have clear policies in place 

Keep your grievance and disciplinary procedures up to date and compliant with the ACAS Code of Practice; seek legal guidance if you’re unsure what that involves.  

Make these policies easily accessible and include them in your employee handbook. 

Dispute resolution – the reactive approach

1. Use informal resolution first 

Where appropriate, encourage informal discussions between the parties involved. This can often resolve issues quickly and amicably. If there’s a degree of antipathy between them that could cause problems, a neutral third party, such as an HR representative, could make the conversation easier. 

2. Escalate to formal procedures when needed 

Although an informal approach often bears fruit, that isn’t always the case and if that first step fails, follow your formal grievance procedure. This should include: 

  • A written complaint 
  • A fair and thorough investigation 
  • A meeting with the employee 
  • A written outcome and right to appeal 

You should definitely keep written records of every step you take and the decision process behind those steps to show that you are fully legally compliant in case the dispute moves to the tribunal stage.  

3. Consider mediation 

Sometimes, the involvement of an impartial third party can unlock what might previously have been an intractable situation. Mediation involves a trained, impartial specialist helping both parties reach a mutually acceptable solution. It’s voluntary and confidential. 

Mediation can be used at any stage but it’s particularly effective before formal procedures begin. 

4. Know when to seek legal advice 

Seek legal advice as early as possible when facing a workplace dispute, particularly if unfair treatment is alleged or serious concerns raised.