Talk it Through: Mediation as an Option for Termination Cases

Fri, Jan 9th, 2026 | by Miles Mediation and Arbitration | Article | Social Share

By Cardina Johnson

No matter how carefully they’re handled, letting someone go can stir up a mix of emotions: anger, disappointment, embarrassment, and fear. It’s not just the employee, however, who feels the weight of the situation. For employers, the ripple effect can extend far beyond the moment, especially when the decision ignites talk of legal action.
Terminations are one of the biggest triggers for lawsuits, not always due to the reasons given for terminating, but also due to the experience feeling personal. That’s where mediation can aid the parties and make all the difference.

Why Terminations Can Get Messy

Most lawsuits after a termination don’t come down to the paperwork or even the official reason someone was let go. Rather, the true catalyst often starts when the employee feels disrespected, blindsided, or singled out. Even if the business has rock-solid documentation, emotions can drive employees to look for validation in court.

Here’s the tricky part: many employers focus so much on a termination checklist focused on final pay, return of equipment, and legal notices but they forget about the human side of the conversation. A cold, abrupt exit can turn what could have been a palatable separation into the beginning of a lawsuit. The truth is, how someone is treated in those final moments matters just as much as the facts behind the decision.

How Mediation Helps
Mediation changes the dynamic. Instead of preparing for a fight in court, both sides get a safe, confidential space to talk things out. A good mediator balances the situation where an employer needs to move on, and an employee needs to feel heard.

When it comes to terminations, mediation can:

• Give people a voice. Mediation offers the employee a chance to speak freely in a structured environment. Often, just being able to share one’s perspective without interruption or defensiveness helps release frustration. It’s human nature to want to be heard — and when people feel heard, their anger often deescalates significantly.
• Clear up confusion. Many disputes grow from miscommunication or misunderstanding. Maybe the reason for termination wasn’t explained clearly. Maybe the employee misunderstood a policy. Mediation allows space to sort through what actually happened versus what was assumed.
• Restore dignity. Terminations can bruise egos on both sides. Employers may feel frustrated or disappointed; employees may feel ashamed or insulted. Mediation gives everyone a chance to acknowledge the situation respectfully, ending things with a sense of dignity instead of bitterness.
• Protect reputations. Former employees don’t disappear. They can become or interact with customers, contractors, and others in the community who may talk about their experience. How they’re treated during their exit can have a direct impact on what’s communicated about an employer long after they’ve left. A mediated resolution helps preserve goodwill and professionalism.
• Protect privacy. Unlike litigation, which becomes part of the public record, mediation can remain fully confidential. The discussions, documents, and settlement terms can all be kept private if both parties agree. This confidentiality allows everyone to speak openly, explore options honestly, and resolve disputes without the input and watchful eyes that come with a public courtroom battle.
• Save money and stress. Litigation is expensive and can be burdensome financially, emotionally, and reputationally. Mediation often resolves issues at a fraction of the cost, freeing both sides from a protracted dispute. This keeps attention where it belongs: on moving forward in a more expeditious manner.

What Employers Can Do
Building mediation into the process isn’t complicated. Consider offering it for situations where tensions are running high, like with long-term employees or those who’ve already raised complaints or filed grievances. Train managers to anticipate as well as notice when emotions are escalating and bring in a mediator early. Don’t underestimate the value of working with professionals who understand both the law and the human side of workplace disputes.
Most importantly, don’t see mediation as giving in. It’s a smart, progressive way to show respect, reduce conflict, and keep an organization focused on the future.

The Bottom Line
Terminations will always be challenging, but they don’t have to turn into lawsuits. By using mediation, employers can address emotional responses, give employees dignified exits, and keep the focus on resolution instead of conflict. In short: when things get personal, mediation can keep them from getting litigious.

*Originally published in the Missouri In-House Council and reprinted with permission.

About Cardina Johnson

Cardina Johnson is an accomplished attorney and mediator with extensive experience in labor and employment law, insurance defense, and dispute resolution. She currently serves as Deputy General Counsel for the Illinois Education Association, where she oversees legal matters and provides guidance on complex labor issues.