Employment Dispute Arbitration

Employment Dispute Arbitration

Employment Dispute Arbitration is a method of resolving disputes between employers and employees outside of the court system. It involves the use of a neutral third party, known as an arbitrator, who listens to both sides of the dispute and makes a binding decision.

In this process, the parties typically agree to submit their grievances, which may include issues such as wrongful termination, discrimination, wage disputes, or contract violations, to arbitration instead of litigation. The arbitration procedure is generally less formal than court proceedings and can be quicker and less expensive.

The arbitration process usually begins with both parties selecting an arbitrator or agreeing to one provided by an arbitration organization. The arbitrator reviews the evidence, hears testimonies, and may conduct hearings. After considering all relevant information, the arbitrator issues a decision, which is usually final and enforceable in a court of law, limiting the parties’ ability to appeal.

For example, if an employee feels they were wrongfully terminated due to discrimination, rather than suing the employer in court, they may first seek resolution through arbitration if it was stipulated in their employment contract. The arbitrator would evaluate the evidence, hear both the employee’s and employer’s arguments, and render a decision that both parties must adhere to.