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This article outlines some options for alternative dispute resolutions that you should consider in your workplace.
A preferable substitute to litigation is alternative dispute resolution (ADR), a term referring to solutions for resolving disputes in any way other than going to court. Alternative dispute resolution relies on maintaining communication and collaboration to reach a mutual agreement. This option can be more efficient and confidential in resolving conflicts, with a variety of options available. In employment disputes, it is necessary to identify which process is the best fit. There are two main processes to focus on:
In the case that parties cannot reach a mutual agreement through negotiations, an impartial third party can be introduced to assist them in their negotiations. A mediator's role in the negotiation is to ease tension between parties and encourage discussion that will result in a solution that satisfies both parties.
During negotiations, disputing parties can opt to refer the matter to arbitration. Arbitration is generally less formal and quicker than going to court, while still providing a structured environment with established rules for both parties to present their arguments. This method is most often used in commercial or business disputes, with arbitrators knowledgeable in business matters.
When deciding which ADR method to apply during employment disputes, consider the conflict you are experiencing in the workplace. Take time to assess and understand the situation.
Mediation is a common process in employment disputes, where a neutral third party facilitates communication to resolve conflicts. It's often used for negotiable issues and aims to preserve the employer-employee relationship. This approach fosters efficient, cost-effective resolutions that encourage open communication and creative problem-solving. By mending relationships and promoting mutual understanding, mediation helps prevent future disputes. Ultimately, it allows both parties to collaboratively determine mutually beneficial terms.
The less commonly used method, arbitration, is employed when the dispute cannot be settled through mediation. The employer and employee may have a strained relationship that makes it difficult to communicate and negotiate a mutual solution that fits both their needs. The dispute can be related to any aspect of the employment relationship such as hiring, performance, or termination.
Employers and employees will both submit their arbitration clause in a contract at the start of employment that states any employment disputes will be resolved through arbitration, rather than litigation. Arbitration benefits the employee just as much as it does the employer. It reduces costs and time, and complaints are often heard by arbitrators, who are more sympathetic towards employees.
ADR provides both the employee and employer with substantial benefits over litigation. Implementing ADR processes at work can help your organization avoid excess expenses, additional time taken, and a tense work environment. As a less formal resolution method, ADR encourages the notion of open communication, which can boost morale through maintaining a welcoming and open work environment. Alternative dispute resolutions can be a good method to consider if both parties are searching for efficient, collaborative settlements that result in maintained relationships, less disruption of personal lives, and lower resource requirements.
The information contained in this post is considered true and accurate as of the publication date. However, the accuracy of this information may be impacted by changes in circumstances that occur after the time of publication. Ashton College assumes no liability for any error or omissions in the information contained in this post or any other post in our blog.
