Award

Definition

An award is a decision made by an arbitrator or mediator that resolves a dispute in a legal context, particularly in employment disputes. It represents the conclusion of an arbitration or mediation process, where the arbitrator or mediator provides a binding or non-binding solution to the conflicting parties. This decision can involve monetary compensation, reinstatement, or other forms of remedy that address the grievances presented by the employees or employers involved.

5 Must Know Facts For Your Next Test

1. Awards can be monetary, such as compensation for lost wages or benefits, or non-monetary, like reinstatement of employment.
2. In arbitration, the award is typically final and binding, meaning the parties usually cannot appeal the decision.
3. Mediated agreements can lead to awards that are not legally enforceable unless formalized into a contract.
4. The terms of an award are based on the evidence presented during the arbitration or mediation process and can reflect industry standards.
5. Awards in employment disputes often address issues related to wrongful termination, discrimination claims, and contract violations.

Review Questions

• What is the significance of an award in the context of employment disputes and how does it differ between arbitration and mediation?
  • An award holds significant weight in employment disputes as it represents the final resolution of conflicts through either arbitration or mediation. In arbitration, the award is typically binding and enforceable in court, making it a conclusive end to the dispute. In contrast, mediation may lead to an informal agreement that parties can choose to enforce later, meaning it's less definitive than an award resulting from arbitration.
• Discuss how the nature of awards influences the behavior of employers and employees during mediation and arbitration processes.
  • The nature of awards plays a crucial role in shaping how employers and employees approach mediation and arbitration. Knowing that an award could result in significant monetary compensation or reinstatement encourages both parties to be more cooperative during mediation to avoid potentially unfavorable outcomes. Conversely, in arbitration, where awards are binding, employers might be more inclined to settle beforehand to mitigate risks associated with losing in front of an arbitrator.
• Evaluate the implications of awards on long-term employee-employer relationships and workplace culture after a dispute resolution process.
  • Awards can significantly impact long-term employee-employer relationships and workplace culture. A favorable award for an employee may foster goodwill and trust if handled transparently; however, it could also lead to resentment among other employees who feel similarly aggrieved but did not pursue claims. For employers, consistently fair awards can enhance their reputation as equitable workplaces, while inconsistent or perceived unjust awards may damage morale and encourage a culture of distrust. Ultimately, how awards are perceived and implemented can either bridge gaps or widen rifts within organizational dynamics.

Related terms

Arbitration:

A method of dispute resolution where an impartial third party makes a binding decision after hearing arguments and evidence from both sides.

Mediation:

A process where a neutral third party facilitates communication between disputing parties to help them reach a voluntary agreement.

Settlement: An agreement reached between parties in a dispute, often involving compromise, which resolves the conflict without further legal proceedings.