Alternative Dispute Resolution(ADR)

Meaning & Definition

Alternative Dispute Resolution (ADR) is a method for resolving workplace or business-related disputes without the need for court. Some examples of ADR methods are mediation, arbitration, and conciliation. In Human Resources (HR), ADR is an effective way to address employee grievances, resolve disciplinary disputes and handle conflicts related to employment. ADR methods allow for quicker, less expensive solutions for employees while preserving confidentiality throughout the process.

Business & HR Significance:

• Faster resolution of workplace conflicts, minimizing the time and financial costs associated with legal actions. 
• Confidential and professional relationships are maintained. 
• Friendly solutions can be reached in a mutually acceptable manner. 
• Healthier employee relations and processes for addressing grievances.

Compliance & Policy Considerations:

ADR mechanisms are frequently considered part of the labour and employment regulatory structure.

Employers may implement ADR through:

• Employer grievance procedures.
• Disciplinary & Employee Relations Procedures.
• Employment Agreements & HR Policies.

ADR Processes should adhere to Fairness, Neutrality, & Due Process Standards.