Globalization and liberalization of economies have given a boost up for the free flow of trade, which now transcends all borders. Global connectivity, integration, and interdependence have been augmented in all areas especially in the economic, social, technological, cultural, political, and ecological sphere. International trade, movement of capital, and integration of financial markets etc plays a vital role in globalization of the economy.

Labour Dispute Resolution is a means to achieve high settlement rates of disputes arising out of the labour relations within the workplace. These days, there is a growing demand for alternative dispute resolution mechanism due to increased competitive pressures. Labour dispute settlement in modernized society reduces the number of individual and small claims arising out of strained workplace relations.

Arbitration is an amicable and selectively informal method of resolving disputes. Arbitration enables to resolve the disputes with the intervention of third party. Arbitration is the process of settling disputes through a neutral third party agreed upon by each side in the dispute, rather than deciding the dispute in the court of law. In deciding complex issues, arbitration can be a more expedient way of resolving disputes than formal litigation and adjudication before the court of law.

The world turned into a global village with the rapid developments in science and technology. Advancement in the communication technology, especially internet, has been a boon to all sectors. Internet has become the chief 'communication tool'. The internet has facilitated many opportunities and equal number of challenges too. The size and complexity of modern society continue to grow with the free flow of businesses, the potential for disputes among the various parties too are growing accordingly.

Alternative Dispute Resolution (ADR) refers to the dispute resolution procedures which fall outside the traditional judicial methods. In recent years ADR has gained widespread acceptance among the common people and the legal luminaries of the developed as well as developing countries. Present increased indication towards ADR rests in its informal methods, cost effectiveness, less time-consuming and the choice of parties to have greater control over the selection of the individual(s).