Difference Between Arbitration and Conciliation

Arbitration vs Conciliation
 

Alternative dispute resolution (ADR) is a dispute resolution technique that is used to resolve disagreements and disputes between parties by coming to an agreeable settlement through discussion and negotiation. Conciliation and arbitration are two such forms of ADR used as alternatives to going to courts to resolve conflicts. Despite their similarities in purpose, there are a number of differences between how the processes of conciliation and arbitration are carried out. The following article provides a clear overview of each type of ADR and discusses the similarities and differences between arbitration and conciliation.

What is Conciliation?

Conciliation is a form of dispute resolution that aids in the settlement of a disagreement or dispute between two parties. The conciliation process is handled by an impartial individual known as a conciliator, who meets with the parties involved and work with them to arrive at a settlement or resolution. The conciliator, being an active participant in this process, works continuously works with both parties to arrive at an agreement acceptable to all. The conciliation process involves the conciliator going back and forth between the parties, discussing the issues involved and what each party is willing to sacrifice, and negotiate in coming to a settlement. The two parties to the process rarely meet, and most discussions are done through the conciliator. One main advantage of conciliation is that it is not legally binding and, therefore, parties can negotiate till a settlement that is pleasing to all can be achieved.

What is Arbitration?

Arbitration much like conciliation is also a form of dispute resolution in which parties at disagreement can find a resolution without having to go to courts. Arbitration is much like a mini court in which the parties need to present their case to a panel of arbitrators, along with supporting evidence. The parties are allowed to select one arbitrator each, allowing the two chosen arbitrators to agree on a third arbitrator. A key disadvantage of arbitration is that the decision put forth by the arbitrators are binding. However, in comparison to court proceedings, arbitration can be more advantageous as the parties involved could select their preferred arbitrator instead of having to present their case to an unknown judge. The materials discussed also have more privacy than in a court proceeding as no media or public are allowed to such arbitration proceedings. However, since the decision provided is binding, the parties cannot appeal their case unless they can prove with clear evidence that a fraud has been committed.

Conciliation vs Arbitration

Conciliation and arbitration are both carried out with the purpose of peacefully and agreeably resolving the conflict between parties. They are both processes that have been adopted to avoid the hassle and cost involved in going to courts to resolve a dispute. Despite their similarities in the outcome that they try to achieve, a number of major differences between the two are there. In conciliation, most if not all communication goes through the conciliator who is trusted by both parties. In arbitration, a panel of arbitrators hear the cases of both parties and examine evidence to come at a resolution. While the decision given by the conciliator is not binding, with room for negotiation, the decision put forth by arbitrators are final and legally binding thereby leaving little room for appeal.

What is the difference between Conciliation and Arbitration?

• Alternative dispute resolution (ADR) is a dispute resolution technique used to resolve disagreements and disputes between parties by coming to an agreeable settlement through discussion and negotiation. Conciliation and arbitration are two such forms of ADR that are used as an alternative to going to courts to resolve conflicts.

• The conciliation process is handled by an impartial individual known as a conciliator, who meets with the parties involved and works with the parties involved to arrive at a settlement or resolution.

• Arbitration is much like a mini court in which the parties need to present their case to a panel of arbitrators, along with supporting evidence.