Sunday, January 6, 2019

A Guide To Effective Dispute Resolution For HR



In this competitive world, working with people coming from different backgrounds, and of different age groups, varying experience, we’re likely to have different set of values, needs, and goals and opposite interests. 
If there can be disputes between family members, friends and acquaintances, workplace disputes shouldn’t come across as a surprise. Reason being different set of people function differently, and uncommon interest and opinions are not unlikely.
The thing with disputes is that they cannot and should not be ignored. They’re capable of disrupting relations, and can cause tremendous damage to business, company culture, work culture and an individual’s mental health.
In order to efficiently manage disputes at workplace and ensure a healthy and well-functioning company decorum, the HRs need to up their game. The Human Resource department plays a pivotal role in setting the tone of the company culture, work ethics, behaviour and maintaining it. Here is a guide to effective dispute resolution for HRs, but first let’s understand how disputes can damage the workplace –
  • Consume time: disputes are likely to eat up a lot of time, of the people involved, and the management.
  • Stressful: The environment becomes stressful, and so do the people involved.
  • Physically and psychologically consuming: Any kind of dispute is sure to cause psychological ease and eventually lead to physical incompetency.
  • Divert attention and energy: Negative thoughts consume the mind, and make it tough to focus. This results in lack of focus, and you feel drained.
Coming to effective dispute resolution, what actually is it? –
It refers to methods and processes used by HRs and trained professionals and neutrals to resolve any issues or disputes between employees at a workplace. They can do so by –
  • Negotiation- This refers to a discussion between the concerned parties. This discussion is about the disagreements between the parties, and making a bargain or deciding the way forward. This process may or may not involve the HR.
  • Conciliation- A third person like a neutral or a representative is asked to help the parties. The conciliator interacts with the parties separately and helps them reach a conflict-free decision.
  • Facilitation- It is another dispute resolution process which involves the HR to hold meetings, have discussions, define goals, ideate on how to achieve them, exchange problems and their solutions.
  • Mediation– Here, the HR acts as a mediator, or an external neutral is appointed to mediate and help the concerned to help communicate effectively, and reach a solution. The mediator doesn’t give any legal advices, take sides, or make decisions.
Researches done by organization show that mediation is the most effective dispute resolution method. Reasons being a third person is directly involved and gives un-biased suggestions and hence are accepted by the concerned parties.
  • Arbitration- It is a very common method to resolve workplace disputes. It is a form of formal proceeding wherein the HR listens to the dispute along with evidences and then decides renders a decision.
  • Neutral evaluation- This is another way where the HR hears both the parties and predicts courtroom outcomes. This is done so that the disputes can be efficiently solved without dragging matters to the court. Once the HR arrives to a conclusion(s), they may suggest them to the parties, hence helping them in making settlement.
  • Litigation – This dispute management process involves taking the dispute to the law. The dispute is then resolved in a legal manner and whatever decision is made by the law has to be abided by the concerned parties.
It is very evident that different people have different mind-sets and different understanding. Disputes are a part of life and can be dealt with just the right amount of understanding. 

What Are Smart Contracts And Why They Are The Future Of Legal


The world is changing, and so are its trends. With the boon in technology and digital, every industry is adapting to changes open-mindedly. Same is the case with the conventional legal industry. The self-executing technology has made the industries smart.
Talking of smart, have you heard about smart contracts? If not, we’re here to throw some light on it.
Smart contract are self-executing, and help you exchange money, shares, property or anything of value, in a conflict-free way while avoiding the interfering of middlemen.
Let’s understand it better with an example; say you are at a vending machine, you put in the money and withdraw the commodity of your choice. Smart contract is just like a vending machine wherein you simply drop in money, and get your contract generated.
The smart contract not only generates your contract, but also defines the penalties, more so automatically enforcing those obligations, hence completely striking off the need of a middleman.
Blockchain and bitcoin platforms of smart contracts have bewildered the Indian setup though. Currently, Ethereum is the most used platform for generating smart contracts. Now that we know more about smart contracts, here’s how you may use it-
  • Protecting copyright content: Smart contract has multiple benefits for different types of industries. It enhances transparency, reduces time and expenditure. For instance – if you create a piece of content, say music, it is obvious that more than one person was involved in its creation. It can be a tricky job to figure out who will own the copyrights, and be responsible for all due payments. Smart contracts simplify it for you.
  • Employment contract: An employee and employer relationship is a rather convoluted one. By opting for smart contracts, the job is made easier for both the parties. The employ will know what is expected of them, and so will the employer.
  • Management: The blockchain streamlines the management for organisations. It carves out discrepancies that might occur with independent process of management.
Future of Smart Contracts in Legal –
Smart contracts may possibly change the legal scenario and the way lawyers work in and across firm. But it still is far from perfect. While it still has huge potential in India, there are still few major questions that linger around –
  • What if there’s a bug in the code?
  • We still miss clarity regarding how will it be codifies in the Indian Law, if at all it is.
  • The undefined status of cryptocurrencies, and their taxation is a pertinent question on the future of smart contracts.
  • The Indian IT Act 2000, has put a limitation on the use of digital signatures, unless and until they are obtained through a government designed certifying body. This is in complete contrast with blockchain technology.
But smart contracts do have some benefits over traditional contracts -
  • Since smart contracts are automated, the use of language is more certain, avoiding any scope of human errors like in traditional contracts.
  • Smart contracts are cost effective since there is nil human involvement.
  • The process is fast as there’s no involvement of mediators, hence no to-and-fro which allows the process to be clear and transparent.
  • Smart contracts cannot be tampered with.
As of today, we need more awareness about such advanced technologies, only then will there be positive acceptance towards it. Making a rush in this matter doesn’t make any sense. This is because the law makers and legislation need to be sure, and have complete understanding before taking this forward. The future of smart contract in India might be bright, but the light is still afar.