Conciliation

Structured and Neutral Guidance Toward Resolution

Conciliation is a structured form of out-of-court dispute resolution. A neutral conciliator guides the parties through the process, develops solution options and issues a written recommendation at the end.

CenaCom serves as an independent conciliation body for companies, associations and organizations. We deliver objective, fair solutions that consider all parties’ interests without costly court proceedings.

Zwei Männer sitzen an einem Tisch im Büro und führen ein konzentriertes Gespräch.

What Is Conciliation?

Conciliation is distinct from arbitration: Arbitration ends with a binding award. Conciliation does not. It produces a non-binding, expert recommendation.

Conciliation (Schlichtung) is an out-of-court procedure where a neutral third party guides the parties, structures communication and helps clarify interests.

The key difference from mediation: A conciliator may issue a written, reasoned recommendation. It is not legally binding but can be made binding by contract.

Conciliation often leads to workable agreements because the recommendation provides clear orientation. Even when non-binding, such recommendations carry weight due to the conciliator’s expertise and the standing of the institution. In certain areas, such as collective bargaining, recommendations may be published.

Conciliation provides a professional assessment that supports the parties in reaching agreement.

When Is Conciliation Suitable?

Conciliation is suitable for disputes involving objectively assessable facts. A technical or legal recommendation can support the parties in reaching agreement. It is appropriate when both sides seek a consensual outcome.

Conciliation is particularly effective when disputes follow recurring patterns. Industry and association procedures with defined rules benefit from neutral and efficient recommendations.

Typical Areas of Application

  • Factual disputes concerning defects or deficient performance
  • Collective bargaining and standardized dispute scenarios
  • Industry and association procedures with established workflows
  • Ongoing contractual relationships where continued cooperation is intended

In some sectors, the settlement recommendation may be published, for example in collective bargaining matters. Publication can give the recommendation additional weight.

ConciliationProcess Overview

1

Introduction

Definition of the procedural framework and conditions.
2

Positions

Each party outlines its position and submits relevant documents.
3

Interests

Identification of the underlying interests and context on both sides.
4

Solutions

Development and discussion of potential compromise solutions.
5

Recommendation

The conciliator issues a written recommendation.
Arbitration

Benefits of the Procedure

Experienced Conciliators

Our procedures are conducted by independent specialists (including lawyers, certified legal experts, and engineers). They ensure that all arguments are examined objectively.

Preservation of Relationships

Court proceedings often strain business relationships long-term. Conciliation procedures reduce escalation and help maintain or restore cooperation.

Cost and Time Efficiency

Conciliation procedures are usually less costly and significantly faster than court proceedings. Clear workflows and short timelines often lead to results within weeks rather than months.

Confidentiality

The proceedings are not public. Internal processes, trade secrets, and the organization’s reputation remain protected.

Legal Orientation

Recommendations are based on applicable law. If accepted, the parties can conclude a legally robust agreement.

Example: Stuttgart 21

A well-known example of conciliation in Germany is the Stuttgart 21 process led by Dr. Heiner Geißler, which focused on fact-based and issue-oriented facilitation.
CenaCom

Independent, Structured and Practice-Oriented

CenaCom conducts conciliation procedures based on clear procedural rules. Our conciliators are neutral, legally trained and experienced. They manage the process and ensure a structured approach.

Organizations benefit from a professionally conducted conciliation procedure. On request, we also support associations and companies in establishing internal conciliation bodies.

Dispute
Resolution
since 2004

Frequently Asked Questions

A conciliation can be conducted in writing, on-site or online. All steps are documented and costs are transparent. CenaCom ensures a structured and reliable procedure.

A common feature of out-of-court dispute resolution procedures is that a neutral third party (mediator, arbitrator) assists the disputing parties in resolving their conflict. This is essentially done by structuring the dispute resolution process and ensuring that the parties communicate with each other in a constructive manner.

The main difference between a mediation procedure and an arbitration procedure is that the arbitrator submits their own solution proposal for the conflict to the parties. However, the parties must request this by mutual agreement at the beginning or during the proceedings. The mediator, on the other hand, supports the parties in developing their own solution to the conflict.

Conciliation proceedings can take the form of both mediation and arbitration proceedings. If a party initiates conciliation proceedings before a state-recognized conciliation office by filing an application, either mediation or arbitration proceedings can be conducted.

Further information on the individual types of procedure can be found here.

In principle, the language of the proceedings is German. However, the proceedings can also be conducted in English or French on request. CenaCom will suggest suitable mediators for this purpose.

A state-recognized dispute resolution body is an officially registered institution that offers out-of-court dispute resolution procedures. The advantages are legal certainty, suspension of the statute of limitations and the possibility of reaching binding, enforceable agreements.

Dispute resolution proceedings take place out of court and on a voluntary basis. The parties jointly seek a solution with the support of a neutral body. In court proceedings, a judge makes a binding decision. Dispute resolution is usually faster, more confidential and cheaper.