If you think something is unfair or not right, it is important to understand the problem and how it affects your relationship with the other party. This will help you make informed decisions about the best way to resolve the dispute.

Check your facts

• If you have a written contract, read it carefully. Contracts include rights and responsibilities of each party and obligations you must meet. The contract may also include a dispute resolution clause.
• An oral agreement or an agreement that is part oral and part written are valid if you have proof of what was agreed. You may have paperwork that forms part of the contract. For example, emails that confirm what was agreed, a list of specifications, a quote with relevant details or notes about your discussions, etc.

What are your priorities?

• Work out what is most important to you – Is it getting paid? Getting more work? Or just finishing the job and moving on? Is there a main issue that will resolve other concerns?

Identify potential outcomes

• Consider the dispute and think about what you want to achieve and what you can realistically achieve. Consider impacts on cash flow, time and resources, productivity, future business, and personal relationships.

Now you understand your dispute it is time to talk to the other party. If the issue is minor, you can just call them, but if more complex, a face-to-face meeting can be more successful.

Prepare

• Prepare for your discussion by considering how your dispute started, the key issues and other perspectives.
• Stay calm, be professional and be prepared to negotiate and compromise.
• Be aware that problems are often caused by misunderstanding. Knowing the events that led to the issue and discussing this may help identify if there was a misunderstanding.

Keep a record

• Make clear, written notes outlining discussions and outcomes. Prepare an agreed record of the discussion at the end of the meeting. These notes could be used as evidence if the dispute is not resolved and needs escalating.

If talking over the issue didn’t work, writing a polite and professional letter gives the other party a chance to fix the situation before taking further action. It can also be used as evidence if the situation needs to be escalated.

If your dispute is complex or writing isn’t your strong point, ask for help.

Tips for writing a letter of concern:

• Who – Address your letter to the person responsible for supervising the person or area you are having trouble with, or write to the head of the business or organisation.
• Branding – If you have a business logo or brand, add this at the top of your letter.
• Content – State your concerns clearly and briefly. Provide relevant background, identify options and provide contact details. Make it clear that you want to resolve the situation professionally and quickly. Avoid laying blame.
• Language – Be polite and professional. Avoid abusive, aggressive or emotional language.
• Attachments – Attach copies of relevant paperwork to your letter, for example, a copy of your contract, an email, a list of specifications, a quote or an invoice.
• Copy – make a copy of your letter and keep it.

A letter of concern – May be a good option when the relationship is important and the issue isn’t directly about a debt owed – The business.gov.au website has helpful information including a template for a letter of concern.

A letter of demand – May be the next option if you have tried unsuccessfully to get an invoice paid. The business.gov.au website, has a template for a letter of demand.

See more information about what to do if you haven't been paid on the business.gov.au website.

Many businesses and government agencies have internal dispute resolution processes. ASBFEO’s dispute resolution tool identifies the organisation can best support you in resolving your dispute. 

If you are unable to identify the organisation that can help, the ASBFEO can guide you through dispute resolution. The best way to contact us is by completing an online form.

Alternative dispute resolution (ADR) is an alternative to court to resolve disputes. ADR is generally quicker and cheaper than court and gives you more control over the outcome. Common types of ADR include facilitation, mediation, and conciliation. For a list of mediators on ASBFEO’s Alternate Dispute Resolution practitioners panel click here.

Tips for navigating courts and tribunals as a small business

Navigating courts and tribunals can be daunting. You can seek help from legal practitioners and there are benefits to this. However, it may not be affordable for everyone especially when the disputed amounts are relatively low. You can access local courts and tribunals without legal representation, with many having user-friendly systems to support self-representation for small claims. The tips below can help if you are considering taking your dispute to a court or tribunal or, or if someone has started proceedings against you. 

Try to resolve the issue outside the court system

Court and tribunal processes can be time consuming, stressful and costly. If possible, keep engaging with the other party to reach a resolution. You can do this even after formal proceedings have been lodged, as lodgements can be cancelled if the matter is resolved before a hearing. 

Decide where to lodge

Each court and tribunal have different jurisdictions, that can only consider matters within its powers. Work out which court or tribunal you need to go to before you lodge. You can access a list by state and territory to the relevant courts & tribunals and legal assistance.

The court or tribunal you need to go to, will depend on factors like the:

• type of dispute
• location of the parties
• value of the claim (how much you or the other party is seeking).

For example, if you are in Victoria and the other party is in Queensland, you may be able to lodge a claim in either state. When you’re deciding where to lodge your claim, consider how much it costs (lodgement fees can vary), how easy it is for you to participate and to have decisions enforced. 

Understand the process

Familiarise yourself with the court or tribunal procedures or requirements. This includes knowing the timeframes, the hearing format, and what is expected from you. 

Some courts and tribunals have pre-trial procedures or alternative dispute resolution (ADR) processes (mediation) to try help parties reach a resolution without a hearing. Some legal proceedings integrate ADR into its process.

Prepare well 

Clearly outline your case in writing, including the main points you want to make and supporting evidence. 

Collate your supporting documentation, including correspondence with other parties and any other documentation that helps clarify the issue. The evidence or documentation required will depend on the nature of the matter. 

Rehearse what you are going to say to ensure you clearly and confidently present your case. 

You may want to get a lawyer, since it takes away some of the stress and a lot of preparation.

At a hearing, dress neatly, be on time, be prepared for delays, and speak calmly and politely. Make sure your mobile phone is off. Most courts and tribunals will allow you to take a friend for support, but you should be clear with your friend that can’t talk unless asked. 

Ask questions if you are not sure. Courts and tribunals have administrative staff to help things run smoothly. They can’t give legal advice, but they can help with questions about process and procedure.