The Comparison Between Arbitration And Mediation

Arbitration is a process that can take the place of a court hearing when there is a dispute. The arbitration process consists of both sides presenting their argument to an impartial third party who will either provide a decision that will be upheld by the court. There are different types of arbitration and only certain types of disputes can be heard by the arbitration process. The two most common types of Arbitration in an employment relationship are voluntary, which is non-binding and compulsory, which is binding (Fallon & McConnell, 2007, p.388). As the names imply, voluntary arbitration is entered into when both parties agree to use this process in place of the court system to resolve their dispute. Compulsory arbitration is …show more content…
During mediation the parties are always involved in the decision and must agree to it. Mediation is an informal process and the parties are very active in it. Arbitration works much more like a court hearing, the parties are under oath and it is an evidence only hearing. The arbitrator will independently hear both sides and render a decision, a mediator will listen to both sides, help explain each position to the other and assists the parties in finding a mutually acceptable decision ("Comparison Between Arbitration & Mediation | FINRA.org," 2017). Arbitrators credentials, and certification can vary. An arbitrator who is certified may have completed a state or national certification process. This is an official designation that signifies the arbitrator has met the qualifications set forth. Being credentialed is not the same as being certified. There are multiple entities that can credential arbitrators and they have varying requirements for the credentialing process. Whether for certification or for credentialing the process usually includes reviewing education, experience and areas of expertise (Fallon & McConnell, 2007, …show more content…
It is common to see arbitration requirements in union contract agreements and formal employment contracts. However, many institutions are now implementing arbitration within their formal disciplinary process. When the arbitration process is a requirement of the employment contract, neither party may elect to have the court hear the dispute and often give up their right to sue the company at a later date or join a class action suit if it arises. However, when the arbitration process is voluntary, either party may choose to proceed with a court hearing instead or even after arbitration (Fallon & McConnell, 2007, p.392). Voluntary arbitration can be a very good first step in a dispute that most likely will go through the courts for a decision. Entering into an arbitration process prior to an actual court hearing will allow both sides to hear the merits of the case. This will give everyone a better understanding of the possible outcomes from a court hearing (Fallon & McConnell, 2007, p.392). Although this could be beneficial to both sides, there are some who feel that the arbitration process in an employment setting gives an advantage to the