Arbitration is a method of dispute resolution used as an alternative to litigation. It is commonly designated in collective agreements between employers and employees as the way to resolve disputes. The parties select a neutral third party (an arbitrator) to hold a formal or informal hearing on the disagreement. The arbiter then issues a decision binding on the parties.

At present there are many pieces of legislation law governs the practice of arbitration. The Arbitration Bill 2008 is presently going through its governmental stages, which will bring all laws together. It is a useful method to achieve a binding result without the costly nature of Court actions.