Four Ways to Resolve Employment Dispute

There are four ways to resolve employment dispute between workers and employers: negotiation, arbitration, mediation, and court litigation.

Negotiation

In this method of resolving disputes, the involved parties will have to try to settle a certain issue on their own without any third party to assist them.

While negotiation is probably the cheapest way to resolve employment disputes, this may not work in some cases since there is no neutral entity that will help disputing parties to come up with a settlement.

Also, negotiating parties may find it hard to immediately resolve their issue since it is not easy to stick to deadlines and attend meetings especially when they are not willing to make compromises.

Usually, most cases of negotiation lead to arbitration or mediation.

Mediation

In this method, disputing parties voluntarily and mutually hire a neutral party (called as mediator) who will help them settle certain issues.

Generally, mediation is a short-term and hands-on process where a mediator helps the disputing parties during the bargaining process, and supervises the exchange of information. Generally, he does not focus on who is at-fault, but focuses on what are the solutions to a problem.

The mediator also defines the problems, helps the involved parties to make “acceptable” compromises, and pinpoints any unrealistic expectation.

Usually, a mediator can assist the parties in drafting a settlement and resolution that will give them both benefits but will still require them to make compromises.

In a court-ordered mediation, the decisions are usually enforceable.

Arbitration

Compared to other alternative ways of resolving disputes, arbitration is the most formal process as it allows the parties to present their side to an arbitrator (usually a retired judge, lawyer, or expert on a certain field) who will then decide what final settlement is the most viable one.

Arbitration is a voluntary and mutual agreement in which both parties can decide on who will facilitate the process. Also, both parties decide on the format of hearing and the procedural rules.

In case there is a problem in the arbitration agreement, parties can ask assistance from agencies, including the US Equal Employment Opportunity Commission (EEOC), that administer arbitration and implement controlling laws.

Meanwhile, one major downside of arbitration is that evidentiary rules and cross-examination are usually not applicable or limited.

Court Litigation

Majority of employment disputes are resolved through out-of-court settlement since a formal litigation is usually expensive and may drag for years. However, some issues can only be settled through court especially when both parties are not willing to make compromises.