HomeHR glossaryAlternate Dispute Resolution (ADR)
Alternate Dispute Resolution (ADR)

Alternate Dispute Resolution (ADR) refers to a set of methods and processes used to resolve conflicts and disputes outside of traditional litigation in a court of law. ADR methods provide alternative avenues for parties involved in a dispute to reach a mutually acceptable resolution through negotiation, mediation, arbitration, or other collaborative approaches. These methods are generally more informal, flexible, and less adversarial than the formal legal system. ADR aims to promote effective communication, facilitate understanding, and find mutually agreeable solutions to conflicts, often with the assistance of a neutral third party.

Example: 

If two employees have a disagreement or conflict in the workplace, their HR department may suggest using ADR to resolve the issue. In this case, the HR department may facilitate a mediation session where a trained mediator helps the employees engage in open and constructive dialogue to identify underlying concerns, explore options, and work towards a resolution that satisfies both parties. By utilizing ADR, the HR department can help promote a collaborative and positive work environment while avoiding the potentially lengthy and costly process of litigation.

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