Another option to litigation is resolution of the conflict outside the court of law using the process of mediation or arbitration. These methods of alternative dispute resolution (ADR) have been on the rise in the few years because of their cost effectiveness and the processes being less time consuming. ADR’s also do not tie up emotional happiness and financial resources for long times as many litigations do.

Mediation is just an act of bringing together the aggrieved parties and soothing the arguments or conversation to come to a final decision on the conflict at hand. However, mediation decisions are not legally binding on the parties and may turn sour when one does not adhere to them. Mediation is voluntary, non-binding and a form of a compromise.

Arbitration decisions, on the other hand are binding on all parties. In cases of arbitration, the arbitrator has various functions and acts as the judge, listens to witnesses, reads briefs from parties and lawyers and comes to a decision based on the “trial”. No appeals are possible against arbitrator’s decisions, since the arbitrator is approved by the affected parties and agree to honor the decision prior to the proceedings. Decision of an arbitrator are formally written and sent to the parties.

Arbitration is widely used today to resolve most workplace conflicts that involve disciplinary proceedings, executive contracts, workplace terminations and many issues of sexual harassment or racial discrimination.

As evident, arbitration tends to be more adversarial than mediation. Mediation however, is more effective in preserving relationships over a period of time.