Dispute Resolution: KK10

disputes

• workplace disputes can arise at any time between employees or between employees and the business

• disputes should be taken seriously and dealt with in a fair and consistent manner

common reasons for conflict

• health and safety issues

• disciplines concerns

• negotiation of new agreement

• job security

• disagreement over wages or conditions

• harassment or bullying

dispute resolution

• effective dispute resolution helps employers maintain good relationships with employees through dealing with the disputes at an early stage before they escalate

• processes to resolve disputes must be included in enterprise agreements and awards

• the earlier a dispute is resolved in the process, the better: cheaper, lest timely, easier to maintain positive relationships, less disruptive to business operations

negotiation

• the first step in resolving a dispute may be through a discussion or through negotiation within the workplace

• negotiation is where the disputing parties discuss their issues are come to their own resolution

• this can help maintain positive relationships where disputing parties see the issue from different perspectives

mediation

• mediation is where an independent third party facilitates communication between the disputing parties, with the aim to them coming to their own resolution

• the mediator encourages the disputing to reach a resolution, however they do not offer suggestions or solutions

• mediation only becomes legally binding if the parties
  then draw up a contract.

advantages of mediation

• disputing parties come to their own resolution. more likely to be accepting of the outcome

• helps maintain positive relationships

• generally cost effective

• mediation is confidential; confidentiality is a key advantage for businesses – helps protect business reputation.

disadvantages of mediation

• there is no guarantee there will be a resolution

• outcomes from mediation may not be legally binding, allowing a change of mind afterwards

• it is voluntary which means parties do not need to turn up, delaying any resolution

arbitration

• arbitration is where both parties put their case forward to an independent third party who then makes the final decision on the outcome

• after considering both sides, the arbitrator will make a binding decision called as arbitral award

• the fair work commission can be called on to be the arbitrator

advantages of arbitration

• a resolution is guaranteed

• it is compulsory to attend

• the decision is legally binding

• conducted in private

disadvantages of arbitration

• parties have no control over the resolution, which may result in one or both parties being unhappy with the outcome

• often more expensive and time consuming than other dispute resolution methods, depending on the nature of the dispute and how the arbitration is conducted.

• less effective at preserving the relationship between the parties in dispute, as arbitration does not aim to create a 'win–win' situation for the parties, and one party may be dissatisfied with the outcome.

similarities between mediation and arbitration

• involve independent third party

• both confidential, conducted in private

differences between mediation and arbitration

• arbitration is legally binding, mediation is not

• arbitrator makes final decision, mediator does not, made by the parties