Arbitration and conciliation are alternative dispute resolution mechanisms that offer parties a more flexible and private means of resolving conflicts outside traditional court proceedings. In arbitration, a neutral third party, known as an arbitrator, is appointed by the disputing parties to hear their case and make a binding decision. This process provides a faster and more cost-effective resolution compared to litigation, and the arbitrator’s decision, called an award, is enforceable like a court judgment.

Conciliation, on the other hand, involves a neutral third party, the conciliator, assisting the parties in reaching a mutually agreeable settlement. Unlike arbitration, the conciliator does not impose a decision but facilitates communication and negotiation between the parties. This collaborative approach often preserves relationships and allows for more creative solutions to disputes.