ADR is Alternative Dispute Resolution and is a method of solving a dispute without the need of litigation.
Litigation is expensive and slow so therefore ADR is useful.
There are four types of ADR:
Negotiation
Mediation
Conciliation
Arbitration
Negotiation is direct communication between two parties. It is completely private, quick, and cheap.
Mediation had a neutral third party and they try and reach a compromise that way. Mediators only work when there is hope that parties can co-operate like in company and family law.
Conciliation has a neutral third party and that third party will offer grounds of compromise and possible basis for settlement.
ACAS (Advisory, Conciliation, and Arbitration Service) can provide their services to do this in industrial disputes.
Arbitration is governed by the Arbitration Act 1996 and it is a binding agreement made in writing.