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Preserving business relationships in disputes

BusinessDay
3 Min Read

The law provides that when there is an industrial dispute, parties should explore peaceful resolution through a process of alternative dispute resolution before it is heard by the Industrial court. This is alternative to the traditional method for resolving disputes which is litigation. It includes negotiation, mediation, conciliation, arbitration. Recourse may be made to these mechanisms for amicable settlement of conflicts between employers and employees.

This approach will help resolve conflicts to avoid a breakdown in relationships and to deal with relationships that have broken down. Mediation is a process whereby parties in dispute select an impartial neutral party to assist them negotiate a mutually agreed settlement. The process is private, confidential and timeous. It is non-binding until an agreement is signed. A settlement agreement signed by the parties is enforceable.

Mediation and conciliation are similar and the terms are used interchangeably in some jurisdictions and are distinguished in others. A common feature of the two is that the resolution of disputes is by consensus, a decision of the parties and not that of the third party. For effective management of organisational conflicts, there is the need to have an established formal approach of handling challenges. Most corporate bodies do not have this arrangement and therefore deal with disputes as they arise. This leads to inefficient conflict management with its setbacks and losses.

A laid down system that employers and employees will have recourse to when there are problems to be resolved. External disputes such as dealing with customers can also be subjected to the same arrangement. It is common knowledge that conflict is inevitable it is therefore helpful to agree in advance on mechanisms of resolution. Specific provisions should be included in contracts for dealing with possible future conflicts. 

This is useful in enabling contractual parties resolve disputes in a more equitable and efficient manner through the insertion of arbitration or mediation clauses in the contract agreement. Providing that if any dispute arises as to the interpretation of the agreement or the rights, responsibilities and liabilities of the parties, would be referred to mediation or arbitration. The agreement may indicate how the arbitrators will be appointed, the place of the arbitration, the operative law for the arbitral proceedings and that the outcome will be binding and final.

    

THEODORA KIO-LAWSON 

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