Disputes can arise between employers and employees in just about any industry. Employers in Kentucky may want to try to resolve the dispute in a manner that is satisfactory to both sides without having to resort to litigation, which can be expensive and time-consuming. In such situations resolving a business dispute using alternative dispute resolution processes such as mediation or arbitration may be appropriate.
What is mediation?
Mediation is a means for employers and employees to negotiate an appropriate resolution to their dispute out-of-court. The mediation process is overseen by a neutral third-party mediator. The mediator is not a decision-maker. Rather, the mediator facilitates discussions between employers and employees with the goal of reaching an out-of-court settlement. Mediation provides companies with a flexible approach to resolving disputes, and it is private and confidential. Moreover, mediation is almost always less costly both in time and money in comparison to a trial.
What is arbitration?
Arbitration is more formal than mediation but less formal than a trial. The arbitration process is overseen by a neutral arbitrator. Unlike mediators, arbitrators are decision-makers, and the arbitration process will end in a binding order that can be enforced by the courts. Arbitration has simpler rules of discovery and evidence in comparison to a trial. Both the employer and employee are given the chance to present their case but generally witnesses will not be called. Sometimes business contracts mandate arbitration if there are disputes between employers and employees. Like mediation, arbitration provides a way for employers to resolve business disputes in a more timely and less adversarial way in comparison to a trial.
Learn more about alternative dispute resolution options
As this shows, mediation and arbitration may be attractive options for employers who want to resolve business disputes without resorting to litigation. This post is for educational purposes only and does not contain legal advice. Employers who have further questions about business disputes can explore our firm’s website to learn more about their options.