Arising disputes in workplace is a common phenomenon almost in all countries. Bangladesh is not also an exception. Sometimes, workers demonstrate in the streets, engage in conflict with the law-enforcing forces, cause harms to factories and industries. Bangladesh like other countries has its own labor laws in which ADR system has been incorporated to resolve or settle these labor disputes. This article is an attempt to analyze about what ADR system is, goals of ADR, how ADR system can work in the field of settlement of labor disputes, why ADR system is important and necessary, and finally whether existing provisions regarding the application of the ADR system under labor laws is adequate enough to settle the labor disputes or not.