Alternate Dispute Resolution (ADR) - HR Glossary

Alternative Dispute Resolution (ADR) refers to a range of procedures and processes for resolving disagreements and disputes outside of typical legal proceedings. ADR methods provide parties engaged in a dispute more options for reaching a mutually acceptable resolution through discussion, mediation, arbitration, or other collaborative approaches. These techniques are typically more casual, adaptable, and less adversarial than the official legal system. ADR seeks to enhance efficient communication, understanding, and mutually agreed dispute resolution, generally with the support of a neutral third party

Example

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If two employees have a dispute or problem at work, their HR department may recommend utilizing ADR to address the issue. In this scenario, the HR department may arrange for a mediation session in which a skilled mediator assists workers in engaging in open and productive discourse in order to discover underlying problems, explore possibilities, and reach a mutually acceptable settlement. By employing ADR, the HR department may contribute to a collaborative and good work environment while avoiding the potentially lengthy and costly process of litigation.