Workplace disputes are not just disruptive but can also be expensive for a business to resolve, especially if they end in litigation. In most instances, avoiding litigation is best for both parties, unless it is used as a last resort. Fortunately, there are various methods of alternative dispute resolution (ADR) on offer and making the best choice regarding these, at an appropriate point in the dispute, is usually a good means of keeping workplace disruption and costs to a minimum. However, ADR can only be embarked upon if all parties agree to take part and agree regarding the mechanism to be used.

What Are the Main Types of ADR?

The three types of ADR most commonly used in workplace disputes are mediation, conciliation and arbitration. The cost to both parties to take part in ADR may vary significantly depending on the type chosen, and the value and nature of the dispute are important factors to take into account when determining whether mediation, conciliation or arbitration is the best course.

Mediation

Mediation is the most flexible form of ADR and can be deployed in a wide range of situations; as such, it is commonly used in workplace disputes. It generally involves a discussion between the parties involved in the dispute, with this process managed and overseen by a mediator, who acts as a neutral third party. The mediator’s role is to assist the parties to identify the disputed issues, with the goal being to reach a resolution that all parties are prepared to accept.

Conciliation

As professionals in dispute negotiation such as Edgar Paltzer know, conciliation usually takes place shortly prior to or after tribunal proceedings have started. The process differs from mediation in that the conciliator will speak to the involved parties on an individual basis, acting as a conduit between each to convey, for example, settlement proposals.

Arbitration

This is the most formal of the three main types of ADR and is usually most appropriate for disputes between legally represented parties that involve significant financial implications. Where a workplace dispute has occurred, arbitration is most likely to be used in cases where the working relationship between parties has come to an end, but a dispute remains regarding money owed to one party from the other. For more information about arbitration, take a look at the embedded PDF.

Edgar Paltzer

The three types of ADR most commonly used in workplace disputes are mediation, conciliation and arbitration. The cost to both parties to take part in ADR may vary significantly depending on the type chosen, and the value and nature of the dispute are important factors to take into account when determining whether mediation, conciliation or arbitration is the best course.

Mediation

Mediation is the most flexible form of ADR and can be deployed in a wide range of situations; as such, it is commonly used in workplace disputes. It generally involves a discussion between the parties involved in the dispute, with this process managed and overseen by a mediator, who acts as a neutral third party. The mediator’s role is to assist the parties to identify the disputed issues, with the goal being to reach a resolution that all parties are prepared to accept.

Conciliation

As professionals in dispute negotiation such as Edgar Paltzer know, conciliation usually takes place shortly prior to or after tribunal proceedings have started. The process differs from mediation in that the conciliator will speak to the involved parties on an individual basis, acting as a conduit between each to convey, for example, settlement proposals.

Arbitration

This is the most formal of the three main types of ADR and is usually most appropriate for disputes between legally represented parties that involve significant financial implications. Where a workplace dispute has occurred, arbitration is most likely to be used in cases where the working relationship between parties has come to an end, but a dispute remains regarding money owed to one party from the other.