Arbitration is a form of legal conflict resolution. It is a dispute resolution alternative similar to mediation or conciliation.It has many advantages over litigation in court, such as party control of the process; typically lower costs and shorter time to resolution; flexibility;. An arbitration clause is a provision in a contract that requires the parties to resolve any disputes through arbitration instead of going to court. Arbitration is a alternative dispute resolution (ADR) in which an arbitrator renders a decision to resolve a dispute between parties. Arbitration is an alternative dispute resolution method that can be much less expensive and time-consuming than court. Arbitrationrelated cases arising from foreign, international, or labor arbitration proceedings are beyond the scope of the paper. Arbitration is the most traditional form of private dispute resolution. Arbitration is a binding procedure. Arbitration replaces court action in disputes between the employee and the employer.