Mediation and arbitration are ways in which parties can reach settlements to their disputes, without going to court.

A mediator is a person who encourages the parties to discuss their dispute and reach a mutually satisfactory resolution. Mediation only occurs if both parties agree to it. A mediated settlement can be enforced in court if need be. If a mediation session fails to produce an agreement, the parties still have the option of going to court.

An arbitrator is a person who hears both sides of a dispute, and makes a decision according to the law to which the parties are obliged to follow. Arbitration is a common way for unions, employers and management personnel resolve disputes about contracts or collective agreements.