Informal level: Overview, definition, and example
What is the informal level?
The informal level refers to the initial, non-formalized stage of addressing issues, disputes, or decision-making before escalating to formal procedures. At this stage, parties attempt to resolve matters through direct communication, discussion, or internal resolution mechanisms rather than relying on official complaints, legal action, or structured processes.
For example, in a workplace dispute, an employee may first raise concerns with their manager informally before filing a formal grievance with human resources (HR).
Why is the informal level important?
Handling issues at the informal level encourages open communication, reduces conflict escalation, and promotes quicker, more cost-effective resolutions. Many organizations prefer to address concerns informally before moving to formal legal or administrative procedures to maintain relationships and avoid unnecessary disputes.
For businesses, having an informal level of resolution saves time, reduces legal costs, and fosters a more collaborative work environment. It allows minor issues to be handled efficiently before they turn into larger, more disruptive problems.
Understanding the informal level through an example
Imagine an employee feels that they were unfairly passed over for a promotion. Instead of filing an official complaint, they first meet informally with their manager to discuss their concerns and understand the reasoning behind the decision. If the issue remains unresolved, they may escalate it to HR as a formal grievance.
In another example, a vendor has a dispute with a client over a delayed payment. Instead of sending a legal demand letter immediately, the vendor reaches out informally to discuss the issue and negotiate a payment plan. If the client fails to respond, the vendor may then pursue legal action.
An example of an informal level clause
Here’s how an informal level resolution clause might appear in a contract or policy:
“Before initiating formal dispute resolution procedures, the Parties agree to engage in informal discussions to attempt to resolve any disagreements amicably. If no resolution is reached within [X] days, the matter may proceed to formal mediation or arbitration.”
Conclusion
The informal level allows for early resolution of disputes, concerns, and business decisions through open discussion rather than immediate formal action. This approach helps reduce conflict, save time, and promote effective communication in professional and business settings.
For businesses, establishing an informal resolution process minimizes legal risks, maintains professional relationships, and ensures that minor disputes do not escalate unnecessarily, making it a valuable conflict management strategy.
This article contains general legal information and does not contain legal advice. Cobrief is not a law firm or a substitute for an attorney or law firm. The law is complex and changes often. For legal advice, please ask a lawyer.