1. External mediators
An independent mediator is typically engaged for a single case and charged as a day rate, with additional time for pre-mediation calls, travel and a written outcome. Rates vary widely by region, seniority and how contested the case is.
This route suits high-stakes, contested or discrimination-adjacent cases where independence needs to be visible and unarguable. It is expensive to use routinely for everyday friction.
2. Internal mediation schemes
Some employers train managers or HR staff as internal mediators. The headline cost is training, but the real cost is ongoing: mediator time away from their day job, scheduling, and the perception problem when the mediator is a colleague of one of the parties.
Internal schemes work best in larger organisations with enough case volume to keep mediators practised, and with clear rules preventing anyone mediating within their own reporting line.
3. Online platforms
Online mediation removes the day-rate and the diary problem: both parties take part in a secure room at their own pace, and the process produces a written record automatically.
GoMediation.ai charges £199 per mediated case for organisations on the platform subscription and £299 without one, employer-paid and charged only when the case reaches agreement. The platform is £4 per active employee per month with a £99 monthly minimum.
4. What to compare it against
Acas research has found that handling workplace conflict through formal procedures costs substantially more than resolving it informally. Defending even a straightforward unfair dismissal claim commonly runs into five figures before any award or settlement.
Set the mediation cost against that, plus the management hours a formal grievance consumes, rather than against doing nothing — because doing nothing is rarely free.
5. Hidden costs to budget for
Preparation and follow-up time for HR, regardless of route. Any cover needed while participants are in session. And the cost of a poor record: if what was tried and agreed is not documented at the time, you pay for it later in reconstruction and risk.
Frequently asked questions
Who pays for workplace mediation, the employer or the employee?
In practice the employer pays. Mediation is part of the employer's duty to manage conflict, and charging an employee for it would undermine the impartiality of the process.
Is workplace mediation cheaper than a grievance procedure?
Usually, yes — mainly because it is shorter. A formal grievance consumes investigation time, meeting time, appeal time and often a period of sickness absence, while mediation typically resolves in days.
Do you have to pay if mediation does not reach agreement?
That depends on the provider. External mediators charge for the day regardless of outcome. On GoMediation.ai the per-case fee is charged when the case reaches agreement.
Is mediation cost recoverable at tribunal?
Costs orders at employment tribunal are unusual and are not a reason to budget for mediation. Treat mediation as risk reduction, not as a recoverable expense.
This is general guidance on UK workplace practice, not legal advice. If a case is contested, high-risk, or involves discrimination, ill-health or long service, take advice from a solicitor or ACAS before acting.
Next step
GoMediation.ai gives HR confidential online workplace mediation, employee reviews, improvement plans and HR letters on one record — £4 per active employee per month, £99 minimum, with mediated cases at £199 for subscribers.
See employer pricing