Mediation and Arbitration Prevents a Dispute Going Public
Mediation and Arbitration is a term used for when there is some kind of dispute in the workplace and those involved have to first try and settle their grievances through a mediation process. This is better than going public and dragging the dispute to court and having the image of the company tarnished. With mediation one person will listen to both sides of the dispute in an informal setting whereas arbitration is a slightly more aggressive means to resolve disputes and it is usually heard by a panel of three people.
Arbitration
These days arbitration clauses have become a standard feature of many employment contracts where parties to the contract agree that should there be a dispute, the matter will go to arbitration rather than litigation. Arbitration takes place out of court and the arbitrator’s decision is usually final. Any future employee grievances over wages and working conditions for instance will not go to court if disagreements occur.
Unbiased Opinions with Mediation
Mediation on the other hand empowers the parties themselves to find a resolution and nothing is final until accepted by the disputing parties.Only when no settlement is reached does the matter go to arbitration. There are a number of companies who also opt to insert mediation clauses into standard contracts as a preliminary dispute resolution step before litigation or even arbitration. Many disputes are solved in mediation because many times a disagreement over leave or wages simply requires an unbiased opinion to bring a fair resolution.
The mediator invites each side to explain their side of the story and act as a neutral facilitator to guide both parties towards a case resolution that is acceptable to both sides.
Minimum Legal Formality from Arbitration
The Commission for Conciliation, Mediation and Arbitration known as the CCMA is charged with resolving disputes in labour relations. The Labour Relations Act requires the CCMA to appoint a Commissioner to arbitrate a dispute if the dispute remains unresolved and the party to the dispute has requested arbitration. The Commissioner has to make a decision on the matter in dispute after listening to all the facts with the mininmum legal formality.
Binding Mediation is a combination of mediation and arbitration. When the parties can’t reach a mutually satifactory compromise, it becomes a binding arbitration and the mediator can continue on as the arbitrator. Arbitration is similar to litigation but instead of a judge the parties have an arbitrator.
Parties make use of mediation and arbbitration as a means of alternative dispute resolution and both are bindin as a court judgement. Mediation particularly is a cost-effective alternative to Court proceedings. . Mediators and arbitrators act in accordance with the Codes of Conduct to guide parties effectively through the mediation process in reaching a settlement to a dispute.
You can Avoid Disputes
If you would love to find out how to keep your company out of the courts because of a dispute within your ranks, there are labour relations companies who offer mediation and arbitration which will save your company face as well as money. Their focus is on helping your company to avoid disputes and resolve problems.
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