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Understanding arbitration in labour and employment disputes

On Behalf of | Apr 9, 2024 | Labour And Employment Law |

Navigating the complexities of labour and employment disputes can be daunting for employers. Disputes can take valuable resources away from the business, so resolving them adeptly when they arise is crucial.

Arbitration has emerged as a pivotal mechanism to resolve such conflicts efficiently. Knowing what this process entails and how it differs from other dispute-resolution methods can help employers recognize the benefits while also considering the limitations. 

The arbitration process at a glance

Arbitration is a structured process with defined steps. It is important for employers to understand what this entails. Here’s a brief rundown:

  • Appointment of arbitrator
  • Pre-hearing meeting
  • Hearing (in-person or virtual hearing)
  • Delivery of award

The objective of arbitration is to be less formal than court proceedings while maintaining a high standard of fairness and professionalism.

Arbitration versus other methods

Arbitration stands distinct from other dispute resolution methods like mediation and litigation in several key ways.

For instance, unlike mediation, where a mediator helps both parties reach a mutual agreement, arbitration ends with a binding decision from the arbitrator. Litigation, on the other hand, involves a public trial and is often more time-consuming and costly. Arbitration offers a private, more streamlined approach that can lead to quicker resolutions.

The chosen approach parties utilize to resolve labour relations conflicts can impact everything from a business’s bottom line to the maintenance of existing relationships. Thus, it is crucial that parties consider their options carefully and with input from a legal professional.

The value of legal guidance

Legal guidance throughout the arbitration process is crucial. With so much at stake, including a business’s reputation and financial well-being, having knowledgeable legal support is vital. It ensures that the employer’s interests are effectively represented and that the process adheres to legal standards.



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