(Solution) CIPD 5HR01 An explanation of third-party conciliation, mediation and arbitration. (2.4)

Third-party conciliation requires the establishment of positive relationships between the disputing parties. Conciliation it is frequently employed in situations involving labour conflicts or problems with customers (Agarwal and Jain, 2023). Conciliation is different from arbitration in that it is more improvisational and less formal. Because of this, unlike numerous other arbitrators, the proceedings can be kept confidential. Furthermore, it doesn’t call for a suit, is friendlier and more responsive to haggling. In the conciliation process, the mediators makes an effort to ascertain the goals of both the parties involved before making suggestions for possible solutions (OMQ, 2023).

In order to help the parties reach a mutually acceptable and satisfactory conclusion, the mediator helps the discourse in an organized manner. This process is referred to as mediation. The mediators assist the parties in determining their own objectives and interests while also wishing for a constructive resolution of the conflict. Mediation is distinct from conciliation and arbitration since a settlement cannot be obtained without the agreement of all parties (OMQ, 2023). Due to the fact that mediators cannot give orders, draw any conclusions, or even identify a problem, they have more responsibility than arbitrators and conciliators when it comes to resolving disputes (GOV.UK, 2023). Though it improves the possibility that the participants in disagreement will be resolved because of their considerable impact on the result.

Arbitration involves solving conflicts by presenting their disagreements of opinion to a panel or arbiter who is an impartial, confidential, and experienced third party and the parties to a dispute.  The members of the arbitral tribunal play a crucial role in determining the case’s resolution. It might be cheaper and easier to obtain than a court hearing, and it might also involve both formal and informal processes (Agarwal and Jain, 2023). Additionally, the exercise engaged in arbitration proceedings is restricted to conventional legal remedies and excludes novel, imaginative, or futuristic approaches to resolving commercial issues.

Third-Party Conciliation

According to Zamroni (2021), third-party conciliation represent a strategy in which third parties (conciliators) are mandated to work neutrally and in a non-biased way for managing their difference. The rationale of this is solving disputes emerging as a result of negotiation.

The strengths of third-party conciliation is its flexible feature, less costs to implement and sustainability. For drawbacks, they include over-reliance on the third party support for resolving disputes. This is with inappropriate attitude of conciliator hindering conciliation successful implementation. 


As evidenced in Fang et al. (2020), a mediator is involved working as a neutral party for managing a dispute of two people to achieve mutual-based settlement or resolving issues faced. This is relevant in an event a discussion is required for entire challenges and to guide the parties to arrive at one point of understanding.

This method strengths include different parties selecting mediators, limited costs incurred and holistic litigation with privacy assured. For drawbacks, this method is not legally anchored, costly to implement and court of law must be involved to enforce the implementation process.


This involve engagement of an arbitrator to resolve conflicts which are found emerging in a specific area of operations (Baran, 2020). For example, in the field of nursing, a qualified nurse arbitrator could be involved to resolve the issues and disputes which come up in the nursing field.

The strengths linked with this strategy include its legal background, holistic adoption and less costs incurred contrary to litigation. Also, issues to do with confidential level and experts selected by the warring parties is an issue.

Considering the differences, an example of third party conciliation is a phenomenon where contract has been breached by an employer. In this case, a conciliator is engaged to successfully resolve the dispute. Further, a mediation could include a situation where the parties in a conflict fail to agree on sharing of responsibilities. The mediator is engaged where they manage the disputes. Finally, an arbitration example is licencing issues and joint ventures challenges. In such a phenomenon, a qualified arbitrator is engaged to assist in resolving the conflict.

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