Most EU countries compliant with mediation requirements, European Parliament says

Some states had chosen to implement mandatory mediation requirements and financial incentives to parties who participate in mediation. "National incentives of this type help to make dispute resolution more effective and reduce the court's workload," a European Parliament statement said.

"While Member States are using varied regulatory approaches and some states are a little behind, the fact remains that most... are not only compliant, but are in fact ahead of the Directive's requirements," it said.

The Mediation Directive came into force on 21 May 2011. It required member states to put national laws in place to make sure that cross-border mediated agreements could be enforced.

States also have to make sure that any limitation periods, which only allow court proceedings to be raised within a certain amount of time after a dispute has arisen, will not run while any mediation proceedings are taking place. It also provides that any information arising out of the mediation process must remain confidential.

Mediation is a form of alternative dispute resolution (ADR). It is voluntary and confidential process using the services of a neutral third party to help negotiate a binding settlement.

Civil and commercial mediation agreements were already enforceable in the UK. New laws implementing the confidentiality and limitation requirements came into force on 20 May 2011 for any agreements entered into on or after that date.

"The importance of mediation as an ADR option is generally well understood in the UK and cannot be underestimated. Mediation provides parties with the opportunity to express themselves, face to face with decision makers from the counterparty and find a solution together - enforceable in contract law. Its success is proven," said Nigel Kissack, an expert in mediation with Pinsent Masons, the law firm behind Out-Law.com.

The European Parliament emphasised the importance of examining how the legislation had been implemented, how it was being used and how it could be improved.

It recommended a thorough analysis of the main approaches taken by member states to bring the provisions into law and called for further action relating to accreditation, training and enhancing the uptake of mediation by businesses.

National authorities should be encouraged to promote ADR procedures, emphasising the "cost, success rate and time efficiency" of mediation, it said.

Common standards for accessing the services of a mediator should also be promoted, it said.

"The UK, and many European countries, will already comply with the Directive and further uniformity can only be for the good of community members and dispute resolution," said Kissack.