In our last article on how to become an effective Mediator in the workplace, we broached the subject of the primary differences between Mediation and Arbitration and promised to elaborate on this in a future article – so here it is. As we stated there, it can be quite complex, hence we will be just sticking to the ‘primary’ points. So what are the primary differences between Mediation and Arbitration?
We have written a whole series on Mediation in which we have made it pretty clear that mediation is generally a better solution to resolve differences before more complex negotiations need to occur. In essence, Mediation is a quicker, less complicated resolution than Arbitration but let’s look into this in more detail.
What differs between a Mediator and an Arbitrator?
This is a good place to begin as it summarises the differences between these two actions. A Mediator assists the parties to negotiate a settlement that will satisfy everyone but does not decide the outcome of the dispute.
An Arbitrator, on the other hand, is more like a Judge who decides on the outcome of a dispute based on the evidence produced and the law presented in an arbitration. So, that brings us to the first and primary key point of how Mediation and Arbitration differ…
Mediation is not legally binding
Whereas Mediation facilitates a negotiation, Arbitration is binding, and the outcome of Arbitration can be enforced in the same way as a court order. The parties must agree to Arbitrate and must sign an Arbitration agreement.
Mediation is generally casual and less formal
Because it is voluntary and non-binding, mediation tends to be conducted in a fairly informal way and certainly in a far less legal manner. The advantages, processes and benefits of Mediation have been set out in our previous articles on the subject.
Arbitration is more formal – and structured
In a way, Arbitration is similar to litigation but the big difference is that Arbitrations are conducted outside of court. They usually come about due to a dispute resolution clause in a contract and sometimes the parties voluntarily decide to go to Arbitration, like in the case of when they want to keep a matter private.
Let’s look at a few of these primary differences in the way Arbitration is structured and plays out…
- In Arbitration there is there is a hearing, just like in a court case, with an Arbitrator who is like a Judge;
- There can be a fairly long pre-trial process which can involve pleadings and the discovery and preparation of written witness statements;
- Parties, like in a trial, can be cross-examined during the proceedings;
- The Arbitrator will usually issue a detailed written decision after the hearing.
Consult the Labour Relations experts
Platinum Business Solutions, apart from offering expert solutions to streamline and elevate any business even in a highly competitive business environment, also prides itself on offering expert Labour and Industrial Relations services as we see this as such a critical aspect of ensuring business success.
Every business is only as good as its people and the ability for them to work harmoniously with each other and management is the key to enhanced productivity and reduced workplace conflict.
Contact us today to talk about your unique business or labour challenges and let us offer you Platinum Business Solutions to launch you into a realm of possibilities you have only ever dreamed of. We put you ahead of the curve – and never settle for less!