Kinds of the ADR used in the Labor Act 2006- 

A. Negotiation 

B. Conciliation 

C. Arbitration 

Negotiation method- Negotiation is recognized as the best method for the settlement of industrial disputes and maintaining industrial relations in a better way because it helps develop harmonious relationship between the management and workers.  negotiation takes place between the employers and their employees over job-related affairs. 

Conciliation method- If the party receiving a communication under sub-section (1) fails to arrange a meeting with the representatives of the other party for collective bargaining within the time specified in sub-section (2),the other party or if no settlement is reached through dialogue within a period of one month from the date of the first meeting for negotiation, or such further period as may be agreed upon in writing by the parties, any of the parties, may within fifteen days from the expiry of the period mentioned in sub-section (2) or clause (b) of this sub-section, as the case may be report the matter to the conciliator and request him in writing to conciliate in the dispute and the conciliator shall within ten days of receipt of such request, proceed to conciliate in the dispute. 

The government shall for the purposes of this provision, by notification in the Official Gazette, appoint such number of persons as it considers necessary, as conciliator for such specific area or any industrial establishment or industry and the conciliator shall take up the conciliation to whom the request shall be made for conciliation.

Arbitration- If the conciliation proceeding fails then the conciliator shall try to persuade the parties to be agree to refer the dispute to an Arbitrator. If the parties do not agree to refer the dispute to an Arbitrator, the conciliator shall within three days of failure of the conciliation proceeding issue a certificate to the parties to the dispute to effect that such proceedings have failed. 

The Arbitrator shall give award within a period of thirty days from the date on which the dispute is referred to him or such further period as may be agreed upon in writing by the parties to the dispute. After he has made an award, the arbitrator shall forward a copy thereof to the parties and to the government. The award of the arbitrator shall be final and no appeal shall lie against it. 

Benefit of solving labour disputes through ADR- 

There are many benefits to alternative dispute resolution (ADR), including complaints are processed more quickly and resolved earlier which leads to more creative solutions; savings in terms of attorneys, staff, and parties who are federal employees; quicker resolution than a hearing would offer and less time that the parties will spend under a cloud of pending litigation; creative resolutions acceptable to the parties, but which a third-party reviewer could not impose. Thus, if ADR is applied before judicial process then matter can be solved earlier, and the parties will be satisfied by the verdict as it is not any forced decision on them. Whereas in court it is time-consuming, lack of adequate number of judges and overall court settings delays the process in which the workers tend to suffer the most. Thus, in the long run the prospect of Alternative Dispute Resolution should have effectiveness over the judicial process.