Free Consultant
Dispute Resolution with Arbitration Part 5
Labor dispute: arbitration versus mediation
Disputes between employees and employers are very common, so which is the best method to solve them?
The first consideration is that the relationship between employer and employee not always ends after the conclusion of the dispute. This could lead to a choice of mediation. This alternative dispute resolution (ADR) method preserves the relationship relatively more than the method of arbitration. Being able to reach an agreement, regardless of the current dispute, means the parties display the will to continue working together.
On the other side, it is not possible to forget that a new agreement can be breached and there is no power to enforce it. Considering this arbitration is to be preferred, it provides a final and enforceable decision that is binding for all parties. Arbitration is also preferable compared to court litigation due to its confidentiality characteristic. A disadvantage of arbitration is that it is based on parties’ will, there must be an agreement to devolve the dispute to the arbitral tribunal. In this aspect, court litigation is preferred because an agreement is not indispensable.
