Arbitration or mediation is a process in which two parties try to resolve a dispute out of the court. Usually when arbitration is done, an arbitrator, mediator or a middle man is involved in the process that listens to the comments from each party and then decides what he thinks the best way to resolve the problem without involving court or legal department in the dispute.
Introduction to the Arbitration Agreement:
When we talk about arbitration, it’s a process in which two parties resolve a problem or issue without involving court or law enforcement department and even if you don’t think of it as a good process for settlements with your employees, many employers and companies prefer not to go to court and resolve their issues with their employees with arbitration process. This is why when employees are hired in these companies and organizations that consider their reputation above all, the employees are asked to sign arbitration agreement. Once they sign this agreement, they agree that they will not sue the company in the court no matter what the situation is and they will agree to resolve the matter with arbitration.
Arbitration is not a bad thing as it saves a lot of time and resources for both the parties but still some employers tend to hide this agreement from their employees and try them to sign it without noticing what kind of rights they are giving away. These types of employers try to throw hundreds of types of documents on their employees on the first day of employment and most of these employees don’t even read the documents before signing them. Other than that, most employers simply inform their employees that if they want to get the job, they have to sign the arbitration agreement.
Key elements to include in the Arbitration Agreement:
1. Choice of the Arbitrator or Mediator:
When you sign the arbitration agreement, you should have some saying in the choice of the arbitrator or mediator. If your employer has all the power to choose an arbitrator, chances are that you will lose your case. You should also ask your employer to have the right to reject at least one mediator without explaining the reason for it.
2. Disclosure of the information or hidden details:
You should include this term in the agreement in order to evaluate the arbitrator. When the employer chooses an arbitrator, you should ask him to disclose information about his business so that you can understand he is not involved in any type of business with the employer and he is completely unbiased.
3. Expenses of the Arbitration:
You should understand that the employer wants the arbitration not you. So, why should you pay for the expenses of this process? This is why it is important that you ask the employer to agree to pay for the expenses of arbitration.
4. Availability of the Remedies:
Keep in mind that if you can’t get all the remedies with the arbitration process that you could have gotten from the court, there is use of this process for you. This is why you should include this clause in the arbitration agreement.
5. Right to hire an Attorney:
Even if you can’t file a case in the court, you should have the right to be presented by or with a lawyer during the arbitration process. You can ask your employer to add this right for you in the arbitration agreement.
Here is preview of a Free Sample Arbitration Agreement Template created using MS Word,
Here is download link for this Arbitration Agreement Template,