VI.

Alternative dispute resolution measures (ADR)

6.1 Negotiate
a) Definition of negotiation:

Negotiation is a strategic discussion intended to resolve an issue that both parties find acceptable.
Negotiations involve give and take, where one or both parties will usually need to make some
concessions. Negotiation occurs between buyers and sellers, employers and prospective employees, two
or more governments, and other parties. Successful negotiation usually involves compromises on the
part of one or all parties (Dhir, 2024).

b) Characteristics of negotiation:

Business dispute resolution by negotiation is a method in which the parties discuss and negotiate with
each other to resolve the conflict without the participation of a third party. During this process, the
parties present their views and opinions and discuss and find appropriate measures to reach a common
agreement. This is a fairly simple method, however, the negotiation results depend on the goodwill of
the participating parties. If one of the parties lacks goodwill, the resolution process may be prolonged or
even fail to reach a final result. When reaching an agreement, the parties will make a record of
commitment to specific solutions to eliminate the conflict. At the same time, they have full authority to
agree on the location, time, content, and method of implementing the negotiation process to ensure
effective dispute resolution (Vietnambiz, 2019).

c) Advantages and disadvantages of negotiation:

Advantages

Negotiation is one of the simplest and most cost-effective forms of alternative dispute resolution (ADR),
as it does not require the use of a third party such as a mediator or arbitrator. When successful,
negotiation provides a quick, informal way to resolve a dispute and can also help maintain or improve
the relationship between the parties. Another important benefit is privacy, as all discussions and
outcomes are kept confidential and do not become public records as in court. In addition, the parties
have complete control over the negotiation process and outcome, with great flexibility to find a solution
that both parties can agree on. Even if no agreement is reached, negotiation helps to focus on core
issues and encourages parties to approach the dispute in a more collaborative manner. The process is
also conducted without prejudice, allowing the parties to discuss openly, and if unsuccessful, they still
have other options, including litigation (Agarwal, 2024).

Disadvantages

Negotiation has some disadvantages, the most important of which is the voluntary nature of the parties,
as no one can be forced to participate if they do not agree. Furthermore, this process requires goodwill
from both parties, otherwise, it is very difficult to achieve the desired result. Another limitation is that
negotiation does not guarantee a final result, and if the problem is not resolved, the parties are forced to
turn to other ADR methods or take the dispute to court. In addition, negotiation does not create legal
precedent, which means that the results of a negotiation cannot be used as a basis for similar cases in
the future. In particular, legal protection in negotiation is also limited, especially when there is a power
differential between the parties, which puts the weaker party at a disadvantage due to a lack of
bargaining power (Agarwal, 2024).

6.2 Mediation

a) Definition of Mediation:

Mediation is a type of alternative dispute resolution in which parties resolve their differences with the
assistance of a neutral mediator. The mediator does not make a decision but rather assists the disputing
parties in reaching an agreement that is acceptable to all parties involved about the issues in dispute
(Justice, 2022).

b) Characteristics of mediation:

Mediation is a voluntary and non-compulsory process in which neither party is forced to enter into or
accept a particular agreement. Unlike a judge or arbitrator, a mediator does not make a decision but acts
as an intermediary, assisting the disputing parties in finding a fair and mutually acceptable solution.
Therefore, mediation is considered a form of facilitated negotiation, in which the mediator not only helps
improve the relationship and the negotiation process but can also propose appropriate solutions. This
process is informal, does not follow strict procedural rules, and is more flexible than a trial in court or
arbitration. In addition, mediation is often confidential, the parties have the right to agree on the level of
confidentiality and sign a clause to ensure that information during the mediation process is not disclosed
to the outside (Justice, 2022).

c) Advantages and disadvantages of mediation:

Advantages

Mediation is particularly useful when parties to a dispute need to maintain a relationship, avoiding the
confrontational elements that are common in litigation, thus facilitating cooperation after the dispute is
resolved. With its high flexibility, mediation is not bound by strict procedural rules, allowing parties to
tailor the process to their needs and encouraging a consensual rather than confrontational approach.
The presence of a mediator allows parties to be more open to exploring settlement options, while also
understanding each other’s interests and positions. This is particularly beneficial in complex disputes
involving multiple issues, where the mediator can propose compromise solutions that are not limited to
legal remedies. In addition, mediation is often highly confidential, ensuring that information is not
disclosed if requested by the parties. The process is also faster than litigation, saving time and money,
and producing a more flexible outcome that better suits the interests of both parties. Due to its
informality and speed of resolution, the cost of mediation is often significantly lower than litigation,
making it suitable for both businesses looking to reduce costs and individuals with limited budgets.
Furthermore, the involvement of a neutral third party helps to control the dialogue effectively, especially
in cases of tense disputes or when previous negotiations have failed. Typically, the costs of mediation are
split equally between the parties, ensuring that both parties have equal benefits and responsibility for
the final outcome (Justice, 2022).

Disadvantages

Although mediation is a flexible method of dispute resolution, it also has several disadvantages. First of
all, it is a voluntary process, not mandatory, so there is no guarantee that the parties will reach an
agreement. Furthermore, even if an agreement is reached, there are concerns about its enforceability
due to the lack of a clear enforcement mechanism. Mediation requires all parties to agree to the
proposed solution, which can be difficult if one party conceals information or fails to cooperate fully. In
addition, mediation may not be suitable if one of the parties wants to make the dispute public, as the
process is often confidential. The quality of the mediator also plays an important role, as if the mediator
lacks skills, the solution reached may not be effective. The unwillingness of one or both parties to
cooperate can make the mediation process a waste of time, effort, and money. If the dispute is not
resolved, the costs of mediation will be in vain. Furthermore, during the mediation process, each party
has the right to withdraw at any time, increasing the risk of failure (Woodward-Smith, 2025).

d) Compare negotiation and mediation:

Criteria Negotiation Mediation

Nature The method of dispute resolution is A method of dispute resolution
voluntary discussion and agreement involves the participation of a third
between the parties to resolve the party as a mediator to support,
dispute without the intervention of a persuade, and find a solution to the
third party. dispute.
Participants Agreement between the parties in a Agreement between the parties and
dispute. the mediator in a dispute.
Confidentiality Ensure absolute confidentiality. Ensure relative confidentiality, but still
more confidential than the court
method.
Characteristics The disputing parties will voluntarily There is the presence of a mediator to
reach an agreement to resolve the assist in finding a solution to the
dispute in a spirit of goodwill. dispute.
Cost Less costly. More costly.
Choice of Dispute By both parties reaching an agreement The ability to choose a dispute
Resolver with each other. resolution person.
Advantages Simple, fast, and inexpensive, protects Has a higher chance of success.
the business secrets of the disputing
parties.
Disadvantages No binding, enforceability depends on Costly, business secrets may be
the parties' willingness. affected, and enforceability depends on
the parties' willingness.
Synthesis of sources: (Luatvietnam, 2021), (Thanh, 2024), (Thuvienphapluat, 2022).
6.3 Conciliation

a) Definition of Conciliation:

Conciliation is a method of dispute resolution similar to mediation but with more active participation of a
third party. In this process, a neutral third party not only supports the negotiating parties but also
proactively proposes solutions or gives opinions to narrow differences, promotes consensus, and helps
the parties reach an agreement more effectively (LexisNexis, 2025).

b) Characteristics of Conciliation:

Conciliation is a voluntary and flexible dispute resolution process where a neutral third party plays an
active role in facilitating an agreement between disputing parties. Unlike mediation, the conciliator does
not merely assist in communication but also suggests possible solutions and provides opinions to help
bridge differences. The process is typically informal, allowing the parties to tailor discussions according to
their needs. Confidentiality is often maintained, ensuring that discussions and proposed settlements
remain private. Additionally, conciliation is non-binding unless the parties agree to a final settlement,
giving them control over the outcome while benefiting from expert guidance (THAC, 2023).

c) Advantages and disadvantages of Conciliation:

Advantages

Conciliation offers several advantages making it an effective dispute-resolution method. One of its key
benefits is confidentiality, ensuring that documents, evidence, and any information shared during the
process remain private. Unlike formal legal proceedings, conciliation is informal, simple, and easy for
participants to follow. Its flexibility allows parties to tailor the process to their specific circumstances and
even withdraw at any stage if they choose. Moreover, conciliation promotes cooperation and helps
maintain amicable relationships between the parties by encouraging mutual understanding and
compromise. Additionally, it is a cost-effective alternative to litigation, offering a quicker and less
expensive way to resolve disputes efficiently (THAC, 2023).

Disadvantages
Despite its advantages, conciliation has certain drawbacks. One major limitation is that it lacks the legal
authority of a court proceeding, as the conciliator's decision is not legally binding. This means that
parties are not obligated to follow the proposed resolution, which can lead to unresolved disputes.
Additionally, the process is highly informal and lacks the structure of judicial procedures, which may
make it feel too casual or ineffective in complex cases. Moreover, there is no guarantee of a successful
resolution, as the parties may fail to reach an agreement, ultimately making the process time-consuming
without a definitive outcome (THAC, 2023).

d) Compare Mediation and Conciliation:

Mediation Conciliation
Meaning Mediation refers to a process of Conciliation is an alternative dispute
settling disputes by an independent resolution method in which an expert
and impartial third party who assists is appointed to resolve a dispute by
the parties to reach a common convincing the parties to agree upon
outcome. an agreement.
Regulation The Mediation Act, 2023 The Arbitration and Conciliation Act,
1996
Number of Third One mediator More than one conciliator
party
Confidentiality In mediation, confidentiality depends In conciliation, confidentiality is
upon trust, and all parties are advised ascertained by the relevant legal
to sign a confidentiality clause for provisions.
extra measure.
Nature of the Third In mediation, the mediator should be In conciliation, the conciliator plays a
Party impartial and objective to the parties’ more active role.
dispute.
Third-party In mediation, the mediator does not In conciliation, the conciliator plays an
give any judgment. active part in evaluating the
contentions and providing suggestions
on the disagreements between the
 parties.
Synthesis of sources: (iPleaders, 2024), (Geeksforgeeks, 2024), (Moveon, 2019).

6.4 Arbitration

a) Definition of Arbitration:

Arbitration is a method of resolution through the activities of an Arbitrator as an independent third party
to end conflicts by issuing an arbitral award that the parties must respect and implement. Arbitration is
the most popular method of resolving commercial disputes, with a history spanning hundreds of years.
Its value is recognized by the courts, and the process is governed by legal regulations that empower
arbitrators and strictly regulate the dispute resolution process (HTPLDN, 2022).

b) Characteristics of Arbitration:

Arbitration is a formal, private dispute resolution process in which the parties agree to submit their
dispute to one or more arbitrators for a binding decision. The arbitrator’s decision, also known as an
arbitral award, is legally binding and enforceable in court, similar to a court judgment, helping to ensure
a definitive solution for the parties involved. One of the main advantages of arbitration is that the
arbitrators are often experts in the field of dispute, helping to ensure that decisions are based on in-
depth understanding and practicality. In particular, if the parties have an arbitration agreement, the
court will not intervene in the case until the arbitration process is completed (Metexam, 2024).

c) Advantages and disadvantages of Arbitration:

Advantages

Dispute resolution by arbitration has many outstanding advantages, helping the parties save time and
costs compared to court proceedings. Arbitration is flexible, allowing the parties to proactively choose
the time and place to resolve the dispute without having to go through many levels of trial, thereby
minimizing cumbersome and costly procedures. Another important advantage is that the parties can
appoint arbitrators with deep expertise and experience in the field of dispute, helping to ensure that the
resolution process is quick, accurate, and in accordance with practice. In particular, the principle of
private trial helps the parties maintain their reputation and business secrets, which is especially
important in the commercial environment. Moreover, the parties can control the provision of evidence
and influence the dispute resolution process, creating favorable conditions to effectively protect their
rights (Phuong, 2023).

Disadvantages

One of the significant disadvantages of arbitration is the limited process of gathering and exchanging
evidence. Unlike court proceedings, arbitration often lacks a comprehensive discovery process, making it
difficult for parties to access information about witnesses and evidence before the hearing. This can
disadvantage the less informed party or reduce their ability to present a coherent argument. In addition,
arbitrators are not necessarily legal experts, and in some cases, they may lack the legal knowledge
necessary to make an accurate decision, especially in complex disputes. If the award is unsatisfactory,
the parties may be forced to appeal to the court, incurring additional costs and prolonging the dispute-
resolution process (Heath Law, 2023).

6.5 Ombudsmen

a) Definition of Ombudsmen:

An ombudsman is an official, usually appointed by the government, who investigates complaints (usually
lodged by private citizens) against businesses, financial institutions, universities, government
departments, or other public entities, and attempts to resolve the conflicts or concerns raised, either by
mediation or by making recommendations (Hayes, 2024).

b) Characteristics of Ombudsmen:

An ombudsman is an individual appointed to review and resolve complaints against a company or

organization in an objective manner. They act independently, free of charge, and impartially, without
taking sides with the complainant or the organization being complained about, to ensure that the
dispute resolution process is fair and transparent. The ombudsman is tasked with carefully examining the
evidence, listening to the views of the parties involved, and making appropriate recommendations or
solutions to resolve the complaint. Using an ombudsman helps parties resolve disputes quickly without
having to take the case to court, thereby saving time, money, and stress in the problem-solving process
(Chadaga, 2024).
 c) Advantages and disadvantages of Ombudsmen:

Advantages

Ombudsmen play an important role in resolving disputes in an objective, speedy, and less costly manner
than traditional legal procedures. Because they operate independently and neutrally, they ensure that
complaints are considered fairly, without bias towards either party. In addition, the Ombudsmen’s
working process is often less complicated than that of the courts, making it easily accessible to parties
without requiring in-depth legal knowledge. Furthermore, using an ombudsman is often free or low-cost,
giving individuals and small businesses the opportunity to defend their rights without worrying about the
financial burden (Hayes, 2024).

Disadvantages

Although the Ombudsmen bring many benefits, there are also certain limitations. Firstly, the decisions of
the Ombudsmen are in many cases not legally binding, meaning that the complained-about
organizations do not have to comply if they do not want to. This can reduce the effectiveness of the
dispute resolution mechanism. In addition, because the working process is not formal, the evidence
collection process can be limited, making the assessment and resolution of complaints sometimes not
comprehensive. In addition, the time to process complaints can be prolonged, especially when there are
too many cases to resolve, affecting the rights of the complainant (Hayes, 2024).

6.6 Tribunals

a) Definition of Tribunals:

Tribunals are judicial bodies that operate outside the traditional court system, providing a specialized
means of dispute resolution. These courts are established to help individuals enforce their social rights.
They primarily deal with disputes between citizens and the state, ensuring fair and accessible justice in
matters of public welfare and administrative decisions (Testbook, 2023).

b) Characteristics of Tribunals:

Tribunals have distinct characteristics that set them apart from the traditional court system. They
operate independently but outside the formal judicial system, and serve as a specialized and accessible
means of resolving disputes, particularly between individuals and the state. Tribunals have simpler, less
formal procedures, allowing disputes to be resolved more quickly and cost-effectively than litigation in
court. In addition, tribunals are often heard by experts in the relevant field rather than judges, ensuring
that decisions are based on specialized knowledge. The aim of tribunals is to simplify the legal process,
enabling individuals to defend their rights without the need for complex legal assistance (Testbook,
2023).

c) Advantages and disadvantages of Tribunals:

Advantages

Tribunals offer several important benefits in the dispute resolution process. First of all, the cost of
participating in tribunals is lower than in traditional courts because it does not require the presence of a
lawyer, and the panel of judges is often highly specialized, so there is no need to summon expert
witnesses. In addition, tribunals operate with simpler procedures and are less confrontational than in
courts, helping the parties feel less stressed and pressured. Another important advantage is the speed of
processing cases, taking only a few weeks or months instead of years as in the court system. In addition,
tribunals are highly flexible because they are not bound by their own precedents, but still follow relevant
decisions from the court. These factors make tribunals an effective, accessible, and suitable method of
dispute resolution for many subjects (Harris, 2022).

Disadvantages

Despite their many advantages, tribunals also face certain limitations. One of the major limitations is the
lack of legal support from the state, which puts litigants at a disadvantage, especially when faced with
parties with stronger legal resources. In addition, although originally designed to be simple and
accessible, some tribunals have become increasingly rigid and legalistic, making the dispute resolution
process more difficult for those without specialized knowledge. Furthermore, although the processing
time in tribunals is often faster than in traditional courts, in some urgent cases, the resolution is still not
really timely. These limitations require continuous improvement to ensure the fairness, efficiency, and
accessibility of the tribunal system (Harris, 2022).

6.7 Trade Union

 a) Definition of Trade Union:

In Vietnamese law, a trade union is a large political and social organization of the working class and
laborers, established on a voluntary basis, a member of the political system of Vietnamese society, under
the leadership of the Communist Party of Vietnam. A member trade union has legal status, is allowed to
use its own seal, and can open bank accounts (Thuvienphapluat, 2022). In UK law, the trade union is an
unincorporated association, not a separate legal entity, but more like a workers’ club than a corporation.
However, it has its own name and can sue or be sued in its own name. As the voice of workers, unions
negotiate with employers on important issues such as wages, hours, benefits, job security, and working
conditions, in order to protect workers’ rights and improve their lives (Unstop, 2023).

b) Characteristics of Trade Union:

A trade union is an organization that represents workers in a particular profession, field, or industry, such
as teachers, doctors, artists, miners, and many others. It is a voluntary organization, where workers can
join at will without being forced to do so. Trade unions are usually permanent organizations, although
their membership may change over time. What members have in common is the desire to protect
workers' rights, ensure employment, and improve wages and working conditions. Trade unions also play
an important role in carrying out collective action to solve problems of individuals or all workers. In
addition, this organization helps build better relationships between workers and employers through
dialogue and negotiation, creating a more harmonious and fair working environment (Francis, 2024).

c) Advantages and disadvantages of Trade Union:

Advantages

Unions provide many important benefits to workers, allowing them to benefit from the collective
bargaining process instead of having to negotiate with management themselves. As a result, they can
receive higher wages than non-union workers. In addition, unions help ensure better working conditions,
from a safe working environment to reasonable rest periods. Workers also enjoy many benefits beyond
wages, such as guaranteed lunch breaks or other support policies. In particular, unions provide
specialized vocational training programs and free legal advice, helping workers improve their skills and
protect their rights when disputes arise (Vorster, 2024).
Disadvantages

Despite the many benefits, unions also have some disadvantages. Industrial action, such as strikes, can
create tensions between workers and management, disrupt production, and have a negative impact on
the economy. Workers on strike also face not being paid, which can cause financial hardship. In addition,
not all members agree with the demands of the union, but they can still be pressured to take part in
collective action. In addition, some union members continue to work during strikes due to their need for
income, and they may be threatened or treated unfairly by other strikers (Vorster, 2024).

6.8 Citizen advice

a) Definition of Citizen Advice:

Citizen Advice in the UK is a non-profit support system organized by Citizens Advice, which provides free
information and guidance to the public on legal, financial, employment, housing, and social welfare
issues. The purpose of this system is to help citizens understand their rights and responsibilities while
assisting them in resolving personal and social issues in a lawful and effective manner (Citizens Advice,
2025).

b) Characteristics of the Citizen Advice:

The citizen advice system in the UK operates as a non-profit and independent organization, ensuring
impartiality in all consultations. It is free and widely accessible, allowing citizens to seek guidance
without financial constraints. The system provides multi-channel support, including in-person
consultations, phone services, and online resources. Additionally, Citizens Advice covers a broad range of
topics, from legal rights to financial and social welfare issues, making it a comprehensive support
network for the public (Citizens Advice, 2025).

c) Advantages and disadvantages of the Citizen Advice:

Advantages

One of the greatest advantages of the citizen advice system in the UK is that it is free and easily
accessible, allowing all individuals to receive support without financial barriers. Advisory services are
available through multiple channels, including online, telephone, and in-person consultations at service
centers. Furthermore, Citizens Advice covers a broad range of topics, including legal, financial,
employment, housing, and social welfare matters. Notably, the organization operates independently, free
from governmental or corporate influence, ensuring that all advice provided is neutral and impartial
(Citizens Advice, 2025).

Disadvantages

Despite its many benefits, the citizen advice system in the UK also faces some challenges. Due to the
increasing demand for advisory services, the organization often becomes overloaded, leading to long
waiting times for assistance. Additionally, Citizens Advice cannot fully replace the services of
professional lawyers, particularly in complex legal cases or significant lawsuits. Another challenge is that
the organization relies on funding from the government and charitable organizations, making its budget
susceptible to financial fluctuations (Citizens Advice, 2025).