Industrial Relations Act, Chap. 88:01 · Equal Opportunity Act, Chap. 22:03 · Occupational Safety and Health Act, Chap. 88:08

Why This Matters

Workplace conflict is inevitable in any organisation. It arises from differences in personality, communication style, workload distribution, competing priorities, and the pressures of day-to-day working life. The question is never whether conflict will occur, but how it will be handled when it does. Conflict that is addressed promptly, fairly, and with a genuine focus on resolution is resolved. Conflict that is ignored, minimised, or handled inconsistently escalates, into formal grievances, industrial disputes, claims before the Equal Opportunity Commission or the Industrial Court, and, in the most serious cases, to constructive dismissal claims where an employee argues that the employer’s failure to address the conflict made continued employment intolerable.

Under the Occupational Safety and Health Act (Chap. 88:08), an employer has a duty to provide a safe working environment, and the psychological safety of employees, including freedom from harassment, bullying, and sustained interpersonal conflict, forms part of that duty. An employer who is aware of a workplace conflict and takes no action is not a neutral party; they are a party who has chosen inaction, and that choice carries consequences.

Common Sources of Workplace Conflict

Understanding the root causes of conflict is the first step in managing it effectively. The most common sources in the SME environment are miscommunication or misunderstanding about expectations, roles, or decisions; perceived unfairness in the distribution of workload, rewards, or recognition; personality or working style differences that have not been managed by the line manager; unresolved grievances that were not addressed at the informal stage; and external pressures, business performance, job security concerns, or personal circumstances, that reduce the individual’s capacity to manage interpersonal friction constructively.

The Conflict Resolution Process

1. Identify and Acknowledge the Issue

The first and most important step is to acknowledge that the conflict exists and that it requires attention. Managers who hope that a conflict will resolve itself without intervention are almost always disappointed. Early acknowledgement, even where the full facts are not yet known, signals to all parties that the matter is being taken seriously and reduces the risk of further escalation in the interim.

2. Speak to Each Party Separately

Before any joint meeting or mediation is attempted, each party to the conflict should be spoken to separately. The purpose of these conversations is to understand each person’s account of events, to identify the specific behaviours or incidents that have given rise to the conflict, and to assess whether the conflict involves any element that requires formal investigation, for example, an allegation of harassment, discrimination, or a breach of the OSHA duty of care. Each conversation should be conducted privately, documented, and treated as confidential. Neither party should be informed of the specific content of the other party’s account before the facts have been established.

3. Gather Information

Where the conflict involves specific incidents rather than a general working relationship issue, the manager should gather relevant information, any documents, communications, or witness accounts that are relevant to establishing what occurred. The standard of evidence required at this stage is not the criminal standard of proof beyond reasonable doubt; it is the civil standard of the balance of probabilities. The question is whether it is more likely than not that events occurred as described.

4. Facilitate Resolution

Once the facts have been established, the manager should facilitate a structured conversation between the parties aimed at agreeing how the working relationship will be managed going forward. This is not a mediation in the formal sense; it is a managed conversation in which both parties have the opportunity to be heard, misunderstandings are addressed, and specific behavioural agreements are made. The focus should be on the future, on what each party will do differently, rather than on relitigating the past. Where the conflict has an element that requires disciplinary action, for example, where one party’s behaviour has been clearly improper, the disciplinary process in Part VII applies alongside the resolution process.

5. Document and Follow Up

The outcome of the resolution process must be documented and shared with both parties. The documentation should record the nature of the conflict, the process followed, the agreements reached, and any follow-up actions. A follow-up check-in with each party, conducted two to four weeks after the resolution, is strongly recommended. It signals that the employer is genuinely invested in ensuring the resolution holds, and it provides an early opportunity to address any recurrence.

Practical Insight: Employer Risk Workplace harassment, including sexual harassment, racial harassment, and bullying, is not simply a conflict management matter. It is a legal matter under both the Equal Opportunity Act (Chap. 22:03) and the Industrial Relations Act (Chap. 88:01), and it requires a formal investigation process, not an informal resolution conversation. An employer who responds to a harassment complaint with a mediation session between the complainant and the alleged perpetrator, rather than a formal investigation, is likely to compound the harm to the complainant, expose themselves to a claim before the Equal Opportunity Commission, and signal to the wider workforce that harassment complaints are not taken seriously. Where a conflict involves an allegation of harassment, turn to Policy 13 – Anti-Harassment and Anti-Bullying Policy (Part XVI, Section 1) immediately.

Template – Workplace Conflict Resolution Record

Use this template to document the conflict resolution process from initial identification through to final outcome. Retain on the personnel files of all parties involved and on the general HR file for the matter.

Date Issue Identified
Parties Involved
Nature of Conflict
Does this involve an allegation of harassment or discrimination?	Yes □ (refer to Ch. 21) No □
Date of Separate Meetings with Each Party
Summary of Each Party’s Account
Information / Evidence Gathered
Date of Joint Resolution Meeting (if held)
Agreements Reached
Disciplinary Action Required	Yes □ No □
Follow-up Date
Follow-up Outcome
Managed By
Date Documented

Final Note – Part VI

Performance management, employee relations, and conflict resolution are not separate disciplines; they are interconnected elements of the same management responsibility. An employer who sets clear expectations builds the foundation for meaningful performance management. An employer who maintains genuine employee relations creates the environment in which concerns are raised early and resolved informally. An employer who addresses conflict promptly and fairly prevents the escalation that generates legal risk. Applied together and consistently, these three disciplines produce the kind of workplace where people want to perform well, and where, when they do not, the employer has both the tools and the legal foundation to address it.

Part VI — Performance Management Decision Flowchart

An Employee's Performance Is Falling Short

When to coach, when to formalise, when to act, and when to pause. This flowchart is designed to be used alongside Chapters 17 (Performance Management), 18 (Employee Relations), and 19 (Workplace Conflict).

This flowchart guides a manager through the decision sequence for a performance concern. It assumes that an issue has been identified — attendance, output, quality, or conduct falling short of role expectations — and the manager must decide how to respond in a way that is fair to the employee, protective of the business, and aligned with the principles the Industrial Court applies in any subsequent dispute.

STEP 1 Is the performance gap specific, objective, and documented with reference to a defined expectation (job description, target, standard)?

✔ IF YES Proceed to Step 2.	✘ IF NO Stop. Clarify whether the concern is a conduct issue, a capability issue, or a misunderstanding of expectations. Do not proceed with performance action until the underlying concern is clearly defined.

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STEP 2 Has the employee been given clear, written expectations for the role, and has sufficient time passed for those expectations to be met?

✔ IF YES Proceed to Step 3.	✘ IF NO Issue written expectations — via job description, objective letter, or revised target — and allow a reasonable period (typically 30 to 90 days, depending on the role) to demonstrate. Reassess at the end of the period.

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STEP 3 Has informal coaching been attempted, and has it been documented in the employee's record (check-in notes, coaching log)?

✔ IF YES Proceed to Step 4.	✘ IF NO Conduct a structured coaching conversation. Identify the specific gap, the improvement required, and the support being provided. Document in the Employee Check-In Record template. Allow a reasonable period and reassess.

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STEP 4 Has the employee been formally notified in writing that their performance is below the required standard, with a specific and time-bound improvement period?

✔ IF YES Proceed to Step 5.	✘ IF NO Issue a written Performance Concerns Letter. State the standard, the specific gap, the required improvement, the support being offered, and the review date. Retain a signed copy.

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STEP 5 Has the employee been placed on a formal Performance Improvement Plan (PIP), with measurable objectives, agreed resources, and a clear review schedule?

✔ IF YES Proceed to Step 6.	✘ IF NO Implement a PIP with: specific and measurable objectives, resources and support being provided, weekly or fortnightly check-ins, and a formal review at 30, 60, or 90 days. The PIP should be signed by the employee and the manager.

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STEP 6 At the PIP review point, has sufficient improvement been demonstrated against the agreed objectives?

✔ IF YES Close the PIP with a written confirmation letter. Continue to monitor via normal performance conversations.	✘ IF NO Before proceeding to formal disciplinary action, check that each preceding step has been properly documented. Review with HR and, if the next step is dismissal, consult the Red Flags section (Part XVI, Section 17) and take legal advice.

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NEXT STEP If the decision is to proceed to formal disciplinary action or dismissal: move to the Part VII Investigations & Discipline flowchart. Review the Red Flags table (Part XVI, Section 17) for trigger conditions requiring legal advice before issuing any notice.

LEGAL WARNING — Five Procedural Fairness Requirements Before any dismissal for performance, the Industrial Court will typically look for: (1) clear written expectations, (2) notification in writing that performance is below standard, (3) a reasonable opportunity to improve, (4) support provided during the improvement period, and (5) a fair and documented decision process. Absence of any one of these substantially weakens the employer's position.

PART VII

Investigations & Discipline

Managing Misconduct, Ensuring Fairness, and Protecting Your Business