What is Alternate Dispute Resolution ?
‘Alternate Dispute Resolution’ is the collective term used for the processes which are designed to resolve disputes and prevent lawsuits. It is alternatively referred to as ‘External Dispute Resolution’ in some places.
Mostly, in cases of employees vs. companies, Alternate Dispute Resolution is preferred as it has multiple advantages over a traditional lawsuit. Some of the advantages include lower cost, 3rd party negotiations, safeguarding reputation, confidentiality and flexibility based on the nature of the case and the parties involved.
Some countries require you to undergo Alternate Dispute Resolution before approaching the court for any kind of disputes. Similarly, most of these are dealt with on paper rather than in person, which is the norm in the case of traditional courts.