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Employment Arbitration Made Simple


These days, arbitration clauses in agreements are fairly common. Especially in agreements related to work, the services of an employment attorney on employment arbitration are often sought. Despite the fact that arbitration clauses are common these days, there is still much that many people do not understand about it.

Arbitration is the procedure where parties resolve disputes out of court, with the aid of a neutral third party. Some people opt to get help from an employment attorney on employment arbitration, although the arbitrator does not necessarily have to be a lawyer. The point of arbitration is to reach a resolution that is faster and more cost-effective to both parties involved.

What does an arbitration clause include?

Most arbitration arises because of arbitration clauses in agreements. Some arbitration clauses can be as simple as stating that disputes must be settled according to whatever arbitration rule is applicable, after which the resolution will be enforced by a local court.

Some arbitration clauses can be more complex, they can include details such as the method of selection for arbitrators, who will shoulder fees for the employment attorney on employment arbitration, whether the resolution be made confidential or not, the venue for arbitration, among others.

Signing employment arbitration clauses

It should be understood that you must always read before you sign the dotted line. In employment contracts, more companies are including arbitration clauses. It is best if you read what rights you are giving up by signing and agreeing to the arbitration clauses. Are you giving up the right to sue over important issues like wrongful termination, discrimination, and/or breach of contract?

If you are wondering why you should be concerned about arbitration, it is not exactly only a matter of having your dispute resolved whether in or out of court. The process of arbitration is very different from court procedures.

First of all, the arbitrator is a private citizen. A jury will not be present to hear your side of the story. Also, arbitration usually cannot be appealed. This means that if you are not satisfied with the decision of the arbitrator, you do not have the option to go to a higher court to make an appeal.

There is also a limit on the amount of information that each side can request of each other, which poses a problem for employees since most of the evidence (in the form of employee records and such) will be coming from his/her employer.

Of course, arbitration does have its own advantages too. The main benefit of arbitration is that it is less formal than how court trials usually are. The process is made easier and faster for everybody involved. While arbitrations can sometimes take months, it is somehow better than going to court, which can take several years to finish. Since the process is significantly shorter, the fees paid to arbitrators will also be a lot less compared to what people will usually pay to lawyers in a lawsuit.