The term alternative dispute resolution (ADR) means any procedure, agreed to by the parties of a dispute, in which they use the services of a neutral party to assist them in reaching agreement and avoiding litigation.
No ADR plan will ever prevent all litigation, but none will come close without the wholehearted commitment of company management.
ADR typically offers a less formal or intimidating environment within which to resolve workplace disputes. Parties are able to work together with a neutral individual or panel to come to a decision resolving the issues in conflict for those involved.
Mediation should be considered when the parties have a relationship they want to preserve. So when family members, neighbors or business partners have a dispute, mediation may be the best ADR procedure to use. Mediation is also effective when emotions may get in the way of a solution.
6 Pros and Cons of Alternative Dispute ResolutionIt prevents hostility. ... It uses simplified procedures and rules of evidence. ... It is usually cheaper than other litigation procedures. ... It promotes an uneven playing field. ... It lacks transparency. ... It comes with questionable objectivity.
The advantages of all forms of ADR over litigation are: flexibility, speed, less stress and lower cost. You can also use some ADR schemes in addition to court or a tribunal.
Is ADR compulsory? There is no general rule in law that says that ADR must be used to resolve a dispute. However, there are cases where ADR is compulsory on at least one of the parties (in consumer disputes this is the trader). Even where ADR is voluntary, there are often strong incentives to use it.
The parties must bear the cost of the arbitrator or mediator's fee, the cost of renting a meeting room, and their own legal fees with respect to preparation for, and participation in, mediation or arbitration. An arbitrator's decision is final and may leave one or both parties dissatisfied and disappointed.
Generally, ADR uses neutral third party who helps the parties to communicate, discuss the differences and resolve the dispute. It is a method which enables individuals and group to maintain co-operation, social order and provides opportunity to reduce hostility.
Alternative dispute resolution (ADR) is generally classified into at least four types: negotiation, mediation, collaborative law, and arbitration.
The five strategies for conflict resolution are avoiding, accommodating, compromising, competing, and collaborating. The parties can choose one or a combination of different types depending on what they need from the process and the perceived strength of their argument.
3 Types of Alternative Dispute ResolutionMediation. In mediation, an impartial individual called the “mediator” is brought to help the parties involved in business disputes collaboratively brainstorm resolutions that are mutually acceptable. ... Arbitration. ... Early Neutral Resolution.