What is defined as a process in which a neutral third party makes a binding decision to resolve a dispute between employers and employees?

The process being described is arbitration, which indeed involves a neutral third party who is appointed to make a binding decision to resolve disputes between employers and employees. This process typically occurs when the involved parties have agreed in advance to submit their dispute to arbitration, often as stipulated in a collective bargaining agreement or employment contract.

Arbitration is distinct because the arbitrator reviews the evidence and arguments presented by both sides and then issues a decision that both parties are obligated to accept. This binding nature is what sets arbitration apart from other dispute resolution processes like negotiation and mediation. In negotiation, the parties themselves engage in discussions to reach a mutually agreeable solution without the involvement of a third party. Mediation involves a neutral third party as well, but their role is to facilitate discussions between the disputing parties rather than to make a binding decision. Litigation, on the other hand, refers to the process of taking disputes to court, where a judge or jury makes a decision based on the law, rather than through an arbitration agreement.

Understanding arbitration’s binding nature and its role as a conflict resolution method is crucial in the context of employment and labor law, particularly in environments where disputes frequently arise.