Alternative Dispute Resolution, Pt. 1: The Pros and Cons of Mediation in Employment Law Cases

This blog is the first installment of a two-part series by Sultan Lawyers focused on Alternative Dispute Resolutions.

Mediation is a popular method to resolve disputes between employers and employees rather than proceeding in front of a judge. It allows employers and employees to discuss their matter outside of the courtroom, which can result in a more efficient, cost-effective, and less contentious resolution to the matter. However, effective mediation requires careful preparation, strategic negotiation skills, and an understanding of the legal framework surrounding the dispute.

What is Mediation?

Employment law mediation is a dispute resolution process that involves a neutral third-party mediator who helps employers and employees resolve disputes outside of court. Mediation is typically less formal than traditional litigation, and the mediator does not make a decision or impose a resolution on the parties involved. The goal of mediation is to achieve a mutually acceptable agreement between the parties that may include a settlement and the resolution of legal claims. Mediation can be an effective way to avoid the time, expense, and uncertainty of litigation while still addressing the legal issues at hand.

Why is Mediation Important for Employment Law Matters

• Firstly, it allows parties to resolve disputes in a more efficient and cost-effective manner compared to traditional litigation. Mediation can be scheduled more quickly than a trial, and because it is less formal, there are fewer procedural requirements and legal fees involved.

• Secondly, mediation can help to preserve relationships between employers and employees. Unlike litigation, where the parties may be adversaries in a formal legal process, mediation provides an opportunity for parties to communicate and collaborate to find a mutually acceptable solution. This can help to maintain a positive relationship between the parties even after the dispute has been resolved.

• Finally, mediation allows parties to retain more control over the outcome of the dispute. During trial, a judge or jury makes the final decision, but in mediation, the parties have a say in the resolution of the issue and can work together to reach an agreement that meets their needs. This can result in a more satisfactory resolution for both parties, which can help to avoid future disputes and minimize the need for additional legal action.

There are several pros and cons to utilizing mediation for employment law matters, including:

Pros

• Cost-effectiveness: Mediation can be less expensive than litigation since it requires fewer legal and court fees.

• Efficiency: Mediation can be scheduled earlier than a trial, allowing parties to resolve their disputes more efficiently.

• Flexibility: Mediation allows parties to craft creative solutions to their disputes that may not be possible through the trial process.

• Control: Parties have more control over the outcome of the dispute, as they have a say in the resolution of the issues and can work together to reach an agreement that meets both parties’ needs.

• Preservation of relationships: Mediation can help preserve relationships between employers and employees, as it provides an opportunity for parties to communicate and work together to find a mutually acceptable solution.

Cons

• Voluntary Participation: Mediation requires the voluntary participation of the parties to succeed. If one party refuses to participate then it cannot proceed.

• No Guarantee of Settlement: Mediation does not guarantee a settlement, and the parties may still need to proceed to trial if an agreement cannot be reached.

• Lack of Formality: The informality of mediation can be a disadvantage, as there may be fewer procedural requirements and rules to govern the process.

• Limited Remedies: Mediation cannot provide all the remedies that may be available through a court proceeding. As a result, parties may need to proceed in front of a judge or associate judge to resolve certain disputes.

• Lack of Finality: Mediation does not automatically result in a final, enforceable decision. Parties must develop their own enforceable agreement, which may require further legal action if either party refuses to comply.

Takeaway

In conclusion, a successful mediation requires thorough preparation, effective negotiation skills, and an understanding of the legal framework surrounding the dispute. Parties who approach the process with a willingness to compromise and a focus on achieving mutually acceptable solutions are more likely to achieve a successful outcome. With the help of employment counsel, employers and employees’ disputes can be resolved in an efficient and cost-effective manner in advance or by way of a mediation.

We at, Sultan Lawyers, can help negotiate favourable terms for both employees and employers. If you have an employment law case such as a wrongful or unjust dismissal, or otherwise, contact employment lawyers, Sultan Lawyers, at 416-214-5111 or here.