Mediation Agreement (UK)
This Mediation Agreement (the “Agreement”) is entered into on [Agreement Date] between:
[Party 1 Name], of [Party 1 Address], [Party 1 City], [Party 1 Postcode] (hereinafter referred to as “Party 1”);
[Party 2 Name], of [Party 2 Address], [Party 2 City], [Party 2 Postcode] (hereinafter referred to as “Party 2”);
[Mediator Name], [Mediator Organisation] (hereinafter referred to as the “Mediator”).
Party 1 and Party 2 are referred to collectively as the “Parties”.
BACKGROUND
The Parties are in dispute regarding: [Dispute Description].
The Parties and the Mediator have agreed to participate in mediation as a means of resolving the dispute and have agreed to be bound by the terms set out in this Agreement. The Parties acknowledge that mediation is a voluntary and without-prejudice process facilitated by a neutral third party, and that the Mediator does not act as a judge, arbitrator, or legal adviser.
The Parties further acknowledge that, pursuant to the Civil Procedure Rules (Pre-Action Protocols) and applicable Practice Directions, the courts of England and Wales actively encourage the use of alternative dispute resolution (ADR) including mediation, and that an unreasonable refusal to engage in ADR may have adverse costs consequences in any subsequent proceedings.
1. APPOINTMENT AND ROLE OF THE MEDIATOR
1.1 The Parties hereby appoint [Mediator Name] as the Mediator for this mediation on the terms set out in this Agreement.
1.2 The Mediator will facilitate negotiations between the Parties with a view to assisting them in reaching a mutually acceptable resolution of the dispute. The Mediator will act as an impartial and neutral facilitator. The Mediator shall not give legal advice, impose a solution, or adjudicate on the merits of the dispute.
1.3 Either Party may withdraw from the mediation at any time on written notice to the other Party and to the Mediator, without prejudice to any rights that Party may have in subsequent proceedings.
1.4 The Mediator may withdraw from the mediation if, in their professional judgement, continuation would be inappropriate, unethical, or contrary to the interests of justice.
2. DATE, TIME, AND VENUE
2.1 The mediation is scheduled to take place on [Mediation Date] at [Mediation Venue].
2.2 Each Party shall be entitled to be legally represented or accompanied by an adviser during the mediation. The Parties shall notify the Mediator of the identity of their representatives and any advisers at least five business days before the mediation date.
2.3 Each Party undertakes to attend the mediation in person (or by a duly authorised representative with full authority to settle the dispute) and to participate in the mediation process in good faith.
3. MEDIATOR’S FEES AND EXPENSES
3.1 The Mediator’s fees and expenses shall be: [Mediator Fees].
3.2 The Parties shall be jointly and severally liable to the Mediator for payment of all fees and expenses. As between the Parties, each Party shall bear an equal share of the Mediator’s fees and expenses unless they agree otherwise.
3.3 Each Party shall also be responsible for its own legal costs and other expenses incurred in connection with the mediation.
4. WITHOUT PREJUDICE AND CONFIDENTIALITY
4.1 The mediation process, including all communications, documents, and statements made by the Parties or the Mediator during the mediation, shall be treated as without-prejudice and shall be confidential. No Party may disclose, refer to, or rely upon any such communication or document in any subsequent court, arbitration, or other legal proceedings.
4.2 All information disclosed during private sessions between the Mediator and a Party shall be treated as confidential and shall not be disclosed by the Mediator to the other Party without the express consent of the disclosing Party.
4.3 All persons attending the mediation (including legal advisers, witnesses, and any other attendees) shall sign a confidentiality undertaking in a form approved by the Mediator before participating in the mediation session.
4.4 The confidentiality obligations in this clause shall not apply to information that: (a) is already in the public domain; (b) is required to be disclosed by a court order or by law; or (c) is necessary to enforce the terms of any settlement agreement reached at the mediation.
5. SETTLEMENT
5.1 Any settlement reached during or as a result of the mediation shall not be binding unless and until recorded [Settlement Formality]. Oral or informal agreements reached during the mediation shall not constitute a binding settlement.
5.2 A written settlement agreement, once signed by the Parties, shall constitute a binding contract between the Parties and may be enforced accordingly. The Parties agree to use all reasonable endeavours to complete a written settlement agreement on the day of the mediation, if a settlement in principle is reached.
5.3 Where the dispute is the subject of existing court proceedings, the Parties may ask the court to record any settlement as a consent order, which shall have the same effect as a court judgment and may be enforced as such.
6. IMMUNITY OF THE MEDIATOR
6.1 The Mediator shall not be liable to the Parties for any act or omission in the performance of their role as mediator unless the act or omission constitutes fraud or wilful misconduct. The Parties agree not to call the Mediator as a witness in any subsequent legal proceedings arising out of or related to the dispute, and not to subpoena any notes or records made by the Mediator during the mediation.
7. GOVERNING LAW AND JURISDICTION
7.1 This Agreement and any dispute or claim arising out of or in connection with it shall be governed by and construed in accordance with the laws of England and Wales. The Parties irrevocably submit to the exclusive jurisdiction of the courts of England and Wales for the resolution of any dispute arising out of this Agreement.
8. THIRD PARTY RIGHTS
8.1 A person who is not a party to this Agreement shall have no right under the Contracts (Rights of Third Parties) Act 1999 to enforce any of its terms.
IN WITNESS WHEREOF, the Parties and the Mediator have signed this Mediation Agreement on the date first written above.
PARTY 1
Name: [Party 1 Name]
Address: [Party 1 Address], [Party 1 City], [Party 1 Postcode]
PARTY 2
Name: [Party 2 Name]
Address: [Party 2 Address], [Party 2 City], [Party 2 Postcode]
THE MEDIATOR
Name: [Mediator Name]
Organisation: [Mediator Organisation]
Party 1
________________
Signature
Date: ________________
Party 2
________________
Signature
Date: ________________
Mediator
________________
Signature
Date: ________________
What Is a Mediation Agreement (UK)?
A Mediation Agreement in the United Kingdom sets the procedure the parties will follow to resolve, extend, or bring to an end the matter between them, under the framework of the Companies Act 2006.
Mediation in England and Wales is a voluntary, without-prejudice, and confidential process in which a neutral third party — the mediator — assists disputing parties in reaching a mutually acceptable settlement. Unlike a judge or arbitrator, the mediator does not impose a decision. The mediator's role is to support communication, identify common ground, assist the parties in evaluating their respective positions, and help them to reach a negotiated resolution. The process is entirely flexible and confidential, and settlements reached in mediation can address a far wider range of remedies than a court can award.
The legal framework for mediation in England and Wales is shaped by the Civil Procedure Rules 1998 (in particular CPR Part 1 and the Pre-Action Protocols), the common law rules of without-prejudice privilege, and the decisions of the English courts in cases such as Halsey v Milton Keynes General NHS Trust [2004] EWCA Civ 576 and Churchill v Merthyr Tydfil County Borough Council [2023] EWCA Civ 1416. The Centre for Effective Dispute Resolution (CEDR) and the Civil Mediation Council (CMC) publish widely-used model procedures and accreditation standards for mediators in England and Wales.
A Mediation Agreement is distinct from a settlement agreement: the Mediation Agreement is the contract that governs the process itself, while a settlement agreement is the binding document produced if the mediation is successful. A Mediation Agreement is the essential starting document for any formal mediation in England and Wales and should be signed by all parties and the mediator before the mediation session begins.
The legal framework governing the Mediation Agreement (UK) in United Kingdom draws on several key statutes and regulatory bodies. Under the Companies Act 2006, Companies House maintains the register of UK companies. Section 386 of the Companies Act 2006 sets accounting record obligations. The Competition and Markets Authority (CMA) enforces the Consumer Rights Act 2015. The Financial Conduct Authority (FCA) regulates financial services under the Financial Services and Markets Act 2000. The High Court of Justice has jurisdiction under the Senior Courts Act 1981. Parties executing a Mediation Agreement (UK) in United Kingdom should confirm the document reflects current law, including any amendments enacted since the original drafting date. The Companies Act 2006 sets the foundational requirements.
When Do You Need a Mediation Agreement (UK)?
A Mediation Agreement is required any time two or more parties agree to resolve a dispute through formal mediation in England and Wales. It is appropriate for a wide range of commercial, civil, property, employment, and neighbourhood disputes and is used whenever the parties wish to attempt to settle without the cost, delay, and uncertainty of court or arbitration proceedings.
The most common circumstances in which a Mediation Agreement is used in England and Wales include: commercial contract disputes (breach of contract, payment disputes, construction defects, supply chain disputes); property disputes between landlords and tenants or between co-owners under TOLATA 1996; professional negligence claims against solicitors, accountants, surveyors, and other professionals; employment disputes including unfair dismissal, discrimination, and breach of employment contract (note: employment tribunal claims have their own ACAS Early Conciliation requirements); partnership and shareholder disputes; construction disputes governed by the JCT or NEC standard form contracts; intellectual property and licensing disputes; and neighbour disputes including boundary disagreements and nuisance claims.
Under the Pre-Action Protocols set out in the Civil Procedure Rules, parties to civil litigation are expected to have considered ADR (including mediation) before issuing court proceedings. A failure to do so, or an unreasonable refusal to engage in mediation when invited to do so by the other party, can result in adverse costs orders under CPR Part 44, as established in Halsey v Milton Keynes [2004] and reinforced by Churchill v Merthyr Tydfil [2023]. The court's power to stay proceedings and order parties to engage in ADR was confirmed by the Court of Appeal in Churchill, which now represents the leading authority on this issue.
Mediation is also frequently required under standard commercial contracts — including many JCT construction contracts, commercial lease dispute resolution clauses, and financial services agreements — as a pre-condition to arbitration or litigation, making a Mediation Agreement not merely advisable but contractually mandatory in those cases.
What to Include in Your Mediation Agreement (UK)
A well-drafted Mediation Agreement for use in England and Wales should contain several key provisions that protect all parties — including the mediator — and provide a clear framework for the mediation session and any resulting settlement.
The parties and mediator identification clause clearly identifies who is participating in the mediation and in what capacity. In commercial mediations, parties often attend through authorised representatives, and it is important that those representatives have full authority to settle the dispute, as a settlement agreement signed by a representative without authority may not bind the party they represent.
The scope of the dispute clause sets out the subject matter of the dispute to be mediated. This is important because it defines the scope of the mediator's appointment and confirms that the without-prejudice protection applies specifically to the identified dispute. A broad or vague description of the dispute may cause problems if the parties disagree about whether a particular issue is within the scope of the mediation.
The without-prejudice and confidentiality clause is the most legally significant provision in a Mediation Agreement. It establishes that all communications, statements, documents, and disclosures made during the mediation are without-prejudice and confidential, and cannot be referred to or relied upon in subsequent court or arbitration proceedings. The leading case is Brown v Rice and Patel [2007] EWHC 625 (Ch).
The mediator's fees and costs clause specifies the mediator's rates, how costs will be shared between the parties, and each party's liability for their own legal costs. The costs clause should also address what happens to the mediator's fees if mediation is cancelled or the mediator withdraws.
The settlement formality clause specifies the steps required to make any settlement reached during mediation legally binding — typically the execution of a written settlement agreement signed by all parties. This is critical: oral agreements reached during mediation are generally not binding under English law.
The costs consequences clause acknowledges the principle from Halsey v Milton Keynes [2004] and Churchill v Merthyr Tydfil [2023] that unreasonable refusal to engage in mediation can result in adverse costs orders in subsequent proceedings, encouraging good faith participation by all parties.
The governing law clause confirms that the Agreement is governed by the laws of England and Wales and that any disputes about the Agreement itself (rather than the underlying dispute) will be resolved by the courts of England and Wales.
Additional compliance elements for a Mediation Agreement (UK) used in United Kingdom include: Under the Companies Act 2006, Companies House maintains the register of UK companies. Section 386 of the Companies Act 2006 sets accounting record obligations. The Competition and Markets Authority (CMA) enforces the Consumer Rights Act 2015. The Financial Conduct Authority (FCA) regulates financial services under the Financial Services and Markets Act 2000. The High Court of Justice has jurisdiction under the Senior Courts Act 1981. Forms-legal.com provides this template as a starting point for United Kingdom-compliant documentation.
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Reference this free template in an article, syllabus, or research note:
Forms Legal. (2026). Mediation Agreement (UK) (United Kingdom) [Legal document template]. Forms Legal. https://forms-legal.com/uk/business/contracts/mediation-agreement-uk
"Mediation Agreement (UK) (United Kingdom)." Forms Legal, 2026, https://forms-legal.com/uk/business/contracts/mediation-agreement-uk.
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title = {Mediation Agreement (UK) (United Kingdom)},
year = {2026},
howpublished = {\url{https://forms-legal.com/uk/business/contracts/mediation-agreement-uk}},
note = {Free legal document template. Based on Companies Act 2006}
}Also available for these jurisdictions:
Frequently Asked Questions
Without-prejudice privilege is a fundamental principle of English dispute resolution law that protects communications made in a genuine attempt to settle a dispute from being used as evidence in subsequent court or arbitration proceedings. The privilege prevents a party from referring to anything said, written, or disclosed during mediation in later legal proceedings, subject to limited exceptions. The rationale is to encourage open and candid discussions during settlement negotiations without the risk that admissions or concessions will be used against the party who made them. In the context of mediation in England and Wales, all communications — including private meetings between a party and the mediator — are treated as without-prejudice and confidential. The leading case on without-prejudice privilege in mediation is Brown v Rice and Patel [2007] EWHC 625 (Ch), which confirmed that the without-prejudice rule applies to mediation even where the parties have not expressly stated that communications are without-prejudice, provided the communications are genuinely aimed at settlement.
Under the Civil Procedure Rules (CPR) and the Pre-Action Protocols, the courts of England and Wales actively encourage parties to consider alternative dispute resolution (ADR) including mediation before and during litigation. The landmark case of Halsey v Milton Keynes General NHS Trust [2004] EWCA Civ 576 established that, while the courts cannot compel parties to mediate, an unreasonable refusal to engage in mediation may result in an adverse costs order — meaning the refusing party may be ordered to pay the other side's legal costs even if they succeed in the litigation. The Court of Appeal's decision in Churchill v Merthyr Tydfil County Borough Council [2023] EWCA Civ 1416 further confirmed and expanded the court's willingness to stay proceedings and order parties to engage in ADR. Courts applying the CPR will consider whether there was a reasonable prospect of mediation succeeding, the merits of the refusing party's case, the cost of mediation relative to the value of the dispute, and whether mediation would have been likely to succeed.
Yes, a settlement agreement reached during mediation is legally binding as a contract under English law, provided it is reduced to writing and signed by the parties (or their authorised representatives). An oral agreement reached during mediation is generally not binding until it is written up and signed, because of the without-prejudice nature of the mediation process — a party can argue that they did not intend to be bound until a formal document was executed. The settlement agreement is a new, standalone contract that replaces or modifies the rights and obligations of the parties in relation to the dispute. If either party subsequently fails to comply with the terms of the settlement, the other party can sue for breach of contract. Where the dispute was the subject of existing court proceedings, the parties can record the settlement as a Tomlin Order or a consent order, which can be enforced directly as a court order without the need for separate breach of contract proceedings.
The Civil Mediation Council (CMC) is the recognised authority for civil, commercial, workplace, and community mediation in England and Wales. It is the government-supported body responsible for setting standards for mediation training, accreditation, and practice, and maintains a register of CMC-accredited mediators and mediation organisations. The CMC works alongside the Centre for Effective Dispute Resolution (CEDR), which is the leading provider of mediation training and accreditation in England and Wales and publishes widely used model mediation procedures and agreements. CEDR-accredited mediators are recognised as meeting high professional standards and are frequently appointed in high-value commercial disputes. The Ministry of Justice's Online Dispute Resolution programme also operates alongside these bodies to encourage and help mediation for lower-value civil claims. When selecting a mediator for a commercial dispute in England and Wales, parties are advised to use a mediator who is accredited by the CMC or CEDR to confirm the quality and independence of the process.
Yes, and in many cases it is a legal requirement to attempt mediation before applying to the Family Court. Under Practice Direction 3A of the Family Procedure Rules 2010, individuals seeking certain types of family court orders — including in relation to child arrangements, financial provision on divorce, and property disputes — must attend a Mediation Information and Assessment Meeting (MIAM) before making a court application, unless an exemption applies (such as domestic abuse, urgency, or the other party's unwillingness to attend). Family mediation in England and Wales is regulated separately from commercial mediation and is governed by the Family Mediation Council (FMC), which accredits family mediators. Family mediation can cover arrangements for children, financial settlements on divorce or separation, and property disputes between separating cohabiting couples under TOLATA 1996. This Mediation Agreement template is designed primarily for commercial and civil disputes; parties involved in family proceedings should seek advice from a family solicitor or FMC-accredited mediator.
No. A fundamental principle of mediation in England and Wales is that the mediator cannot be called as a witness in subsequent court or arbitration proceedings, and their notes and records made during the mediation are protected from disclosure. This confidentiality is essential to the integrity of the mediation process — if mediators could be compelled to give evidence about what was said in private caucus sessions, parties would not speak freely during mediation. The immunity of the mediator from being called as a witness is confirmed by the without-prejudice privilege that attaches to all mediation communications, and is typically also expressly set out in the mediation agreement itself. In Farm Assist Limited (in Liquidation) v Secretary of State for the Environment, Food and Rural Affairs [2009] EWHC 1102 (TCC), the High Court confirmed that without-prejudice privilege applies to mediation communications and that a mediator cannot be compelled to give evidence about what occurred during the mediation session.
This template is provided for informational purposes only and does not constitute legal advice. Laws vary by jurisdiction and change over time. Consult a qualified attorney for advice specific to your situation.Full disclaimer
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