The Pros and Cons of a Mandatory Arbitration Clause in an Employment Setting

The Pros and Cons of a Mandatory Arbitration Clause in an Employment Setting

Introduction

Arbitration is probably the mode of conflict resolution the best known and most popular. Like litigation, arbitration is based on an adversarial model which requires a party makes an impartial decision. For a long time, it is mainly commercial disputes that have been submitted to arbitration, it was an alternative to litigation between private parties. Arbitration has become an adjudicative process that binds the parties. Other traditional judicial processes have the same features but, overall, the two processes are different. Arbitration is replaced by the protection of civilian judges by referees from the time the latter decide to accept the arbitration order and issue the award. Thus, the Constitutional Court pronounced its decision of October 4, 1993: “... the nature of arbitration, which is an equivalent court, by which the parties can achieve the same objectives with civil jurisdiction, namely obtaining a decision in conflict with all the effects of judicial (Zack, 2009).

Discussion

Clause in Employment Setting Introduction Arbitration Clause in the employment setting is the negotiation clause in a contract because of which dispute between the employer and employee can be resolve. It is in accordance with Federal Arbitration Act which resolves the employment dispute. There are certain Pros and Cons of Arbitration in Employment Setting. Some of the Pros of arbitration are listed below;

Advantage over Litigation, court hearings and trials

Discourage hostility

Cheaper and faster than legislation

Flexible

Simplified rules of evidence and procedures

Confidential

Some of Cons of arbitration are listed below;

Limited option

Uneven playing field

Questionable objectivity

Lack of transparency.

Rising costs.

Arbitration System

The arbitration system is a simple procedure by which the opposing parties submit their problem to an arbitrator expert in the field. She/he will be responsible for issuing the final decision on the problem. He / Referees / is / are / person / responsible / to resolve the dispute by issuing so-called award, proceedings and final decision in all respects equivalent to a final decision and binding for parties. Note that the submission to arbitration must be an express agreement, having a positive impact (submission of the parties to arbitration) and a negative effect, preventing the generated litigation before the judge may arise as a result of prior submission of the parties to arbitration. This negative effect will cause the ...