Mediation is an alternative to resolving employment disputes via formal litigation or arbitration. A neutral intermediary (the mediator) defines the conflicting interests of the parties, explains the legal implications, and attempts to help the parties reach and prepare a fair settlement. When settlements are achieved, they are typically reached more quickly and cheaply because opposing parties have not hired opposing counsel to fight it out in court. More and more employment-related cases are now being resolved this way. For example:

• When an employer alleges it was justified in firing an executive for cause prior to the expiration of the stated term in an employment agreement

• When an employer is confronted with a breach of contract or wrongful discharge case

• When a worker threatens to file a lawsuit alleging sex harassment

• When there is a significant dispute over the terms of an important clause in an employment contract the parties may prefer to work out their problems in the privacy of a business suite instead of a crowded public courtroom and negotiate the terms of a settlement based on their best mutual interests. If a mediator (usually a trained lawyer, businessperson, or retired judge) is hired to assist in the process, he or she will not make decisions for the parties but will help them reach an agreement within the realistic limits of their budget.