Workplace conflict hurts productivity, increases likelihood of employers’ legal liabilities

Law360 Canada (July 21, 2025, 12:40 PM EDT) --

Kiljon Shukullari

Work conflict can be more damaging for smaller businesses, which typically operate with small teams and limited funds. In family-run businesses, family dynamics can further compound tensions in the work environment.

Regardless of a business’s size, it is critical that employers have the right policies and procedures in place to address workplace conflict before it gets out of hand.

How to define workplace conflict

Workplace conflict occurs when disagreements between coworkers — due to clashing ideas, beliefs or opinions — become unprofessional, unlawful or violent.

Employer obligations

Under Canadian health and safety laws, employers have a general duty of care. They must take all reasonable precautions to provide a healthy and safe workplace for their employees. This includes a work environment free of conflict, harassment, violence and discrimination.

How unresolved conflict affects your business

Unaddressed work conflict may lead to work-related health issues, employee turnover, frequent absences, low morale and poor performance. Any escalation may also expose your business to bad publicity, legal risks and employee claims.

Common types of conflicts at work

Poor communication, personality clashes, lack of clarity on scope of roles, change and uncertainty, and different working styles often lead to conflict at work. Some common types of workplace conflicts include:

Personality conflict: These are disagreements or friction caused by personality clashes. For instance, when a detail-oriented employee collaborates with a more spontaneous colleague, or an introvert with an extrovert.

Interdependency conflict: This occurs when different teams work together, increasing the scope for miscommunication and friction due to different working styles.

Preferential conflict: This is a type of conflict that occurs when coworkers have different preferences for working. For instance, working or meeting in-person or virtually; taking a structured or flexible approach to work.

Management conflict: This type of conflict occurs when differing approaches to leadership (authoritarian, democratic, coaching or participative) clash.

How to resolve conflict at work

It is important to address issues as they arise. Unresolved tensions and conflict only get worse with time. To address workplace conflict lawfully and effectively, employers should:

• Develop, implement and follow legally compliant conflict-resolution policies and procedures.
• Be consistent in addressing conflicts to avoid claims of unfair treatment or discrimination.
• Ensure a fair and impartial investigation and follow it up with progressive disciplinary measures.
• Use mediation as a tool to resolve disputes where possible.
• For sensitive situations (harassment, discrimination), use an external, third-party investigator to ensure impartiality.
• Document everything and maintain confidential records of meetings, complaints, action taken.
• Build a conflict-resilient work culture by offering training in communication and conflict resolution.

Kiljon Shukullari is the HR advice manager at HR consulting firm Peninsula Canada.

The opinions expressed are those of the author and do not reflect the views of the author’s firm, its clients, Law360 Canada, LexisNexis Canada or any of its or their respective affiliates. This article is for general information purposes and is not intended to be and should not be taken as legal advice.

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