Mediation---a private and informal dispute resolution process, attended by the immediate disputants and facilitated by an impartial and neutral third person without power to impose a decision---is analyzed for its compatibility with the rationales and its effects on the functions of employment law.;The process is found to be conceptually compatible with a theoretical perspective on employment law that focuses on efficiency, but inconsistent with the perspectives that emphasize the importance of individual rights in employment or the social balance of diverging interests.;In practice, mediation fosters efficiency, but is not capable of ensuring individual rights and improving social justice.;Consequentially, mediation is suitable for the resolution of disputes under contractual employment law, but---without procedural safeguards---not suited to resolve disputes governed by employment regulations. Where disputes are governed by both contractual and regulatory elements, mediation's suitability depends on the relative importance of the different elements. |