Why use ADR (Alternative Dispute Resolution)? Pros and Cons

Several groups, especially large businesses, have been using Alternative Dispute Resolution or ADR to resolve disputes within the company or organization as it is faster and more effective than litigation. Over the years, its uses continue to expand, and companies now implement different alternative dispute resolution methods and policies for managing almost any type of conflict in the workplace.

 

Although it is deemed a more cost-effective and practical method to resolve disputes, companies should not always rely on ADR, especially when it comes to sensitive and complicated company matters where litigation is more appropriate. It is best to try and understand the advantages and disadvantages of alternative dispute resolution before deciding on which method you will use for certain situations.

 

Advantages of using ADR

• Confidentiality
  
   – ADR proceedings are private, and the information and agreements disclosed in these meetings are often kept confidential. Most companies prefer using ADR as it allows them to resolve issues without worrying too much about how it will affect the public’s opinion about the company.
• Saves Resources – Compared to going to a courthouse for litigation proceedings, ADR proceedings are more cost-effective. It is also more beneficial to the parties involved as it helps save time and money when conflicts can be resolved within the office. If you doubt how certain conditions will benefit you, you may consult with a lawyer from legal firms in Dubai.
• Preserves relationships – Unlike when you go to court, there is no need to have one winner and one loser using ADR. Both parties can settle their differences by coming up with a compromise or solution that will benefit all parties involved. When both parties are satisfied with the resolution, it will be easier for everyone to work with each other again and preserve their working relationship.

 

Disadvantages of using ADR

Used as stalling tactics – While ADR is commonly used to avoid resolving issues faster, some use it to delay the resolution and develop a more beneficial solution.

 

Decisions are final – Aside from some exceptions, the decision of a neutral arbitrator is final. The parties getting the shorter end of the stick may not be able to appeal the decision. If made in court, such crucial decisions may be appealed to a higher court for a better bargain.

 

Whether you need legal advice for your business or require assistance in alternative dispute resolution UAE, you may contact Motei & Associates to provide you with the legal services suited to your needs.