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Its an extremely long winded story, but I have been disciplined for calling a manager ignorant, one who has been bullying me for 18 months. My employer refuses to acknowledge my complaint and I am now being threatened with more discipline or dismissal if I don't go to mediation.

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Theoretically, yes. A relationship breakdown at work falls under the potentially fair reason for dismissal of "some other substantial reason". If you refuse to engage in mediation, it makes it more likely that your employer can dismiss you (particularly if the other party wishes to mediate).

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