When restored rights are re-terminated, mediation must deal with trust first

Danny Jovica
November 01, 2026
Australian mediators are used to seeing disputes where the formal legal position changes faster than the relationship can recover. In labour, workplace, government and commercial settings, an order requiring restoration of contractual arrangements may settle one issue, but it rarely settles the underlying conflict.

The re-termination of a union contract only days after an order to restore it raises a familiar problem: compliance with an order is not the same as resolution. A party may technically reinstate an arrangement, then take fresh steps to end it again. That can be lawful in some circumstances and deeply destabilising in others, depending on the instrument, the reasons, the process followed and the governing law.

For Australian commercial and workplace disputants, the lesson is practical. When a contract, enterprise agreement, licence, supply arrangement or governance framework is restored after a dispute, the parties need a clear pathway for what happens next. Without that pathway, the dispute can simply restart with sharper positions and lower trust.

This matters in Australian courts, tribunals and workplace settings because repeat termination cycles are expensive and corrosive. They invite urgent applications, interlocutory fights, allegations of bad faith, and arguments about whether a party has complied with the spirit as well as the letter of an order. In the Fair Work context, similar dynamics can also affect bargaining conduct, consultation obligations and industrial confidence.

Mediators should treat these matters as more than a legal rights dispute. The key questions are often procedural: what notice is required, what reasons must be given, what consultation must occur, what documents should be exchanged, and whether any cooling-off or escalation process should apply before another termination step is taken.

Parties should also be careful about timing. A rapid second termination after a restoration order can be perceived as retaliatory or pre-determined, even where there is a legal basis for it. In mediation, perception matters because it shapes risk, settlement appetite and the likelihood of durable compliance.

A useful settlement structure may include staged implementation, agreed communications, without-prejudice review meetings, defined decision points and a standstill period. These mechanisms do not remove legal rights; they make the exercise of those rights more orderly and less likely to trigger another urgent dispute.

The Australian takeaway is clear: restoration is not resolution. Whether the matter involves a union contract, commercial agreement or public sector relationship, the best outcomes come when the parties mediate the future operating model, not just the immediate legal breach.

If your organisation is dealing with a termination, reinstatement or workplace agreement dispute, contact Mediator Life to discuss a practical mediation pathway: https://mediator.life/contact.

Sources:
- AP Photo/Rogelio V. Solis — BOP re-terminates union contract, days after being ordered to restore it