Employment arbitration can be used to resolve disputes, but it can be time-consuming and expensive. Companies may use it to avoid court intervention and keep matters confidential. Some employees are required to participate, but it’s important to ensure fairness and impartiality before agreeing.
As with other types of mediation, employment arbitration is a method that can be used to resolve multiple disputes. It can be used for many purposes, such as getting more benefits for employees or resolving a contract dispute. In some cases, it may be used by the employer to justify the demotion or termination of an employee once due process has been satisfied. There are many other problems that can be solved by this method.
The processes can be very time consuming and expensive; therefore, some companies try to use employment arbitration in lieu of court intervention. Even if outside legal advice is required, it can be even more cost-effective to use arbitration. There are several other reasons to do this, including the ability to keep these matters more confidential.
Court proceedings become part of the public record unless sealed by a judge. Employment arbitration records may be less public, if not completely confidential. This is one of the issues contested by opponents.
Employees often cannot afford the costs of hiring a lawyer and filing a lawsuit; therefore, they agree to employment arbitration to seek a solution. If mediation is fair and impartial, the parties can reach a reasonable compromise. If internal arbitration is used, the rules may be written in favor of the employer. An objective external source for alternative dispute resolution would seem fairer and perhaps lead to greater success in reaching an acceptable settlement.
Some companies actually require employees to agree to participate in forced employment arbitration rather than taking potential disputes to court. Such stipulations can be included as part of a pre-employment contract. Acceptance may be mandatory before a person is hired. While it generally makes sense for a company to offer employment arbitration, there are those who object to forced acceptance.
Potential employees need to educate themselves about the specific processes and sources used by the company for employment arbitration. Make sure methods are designed fairly and mediators are impartial before signing an agreement. It is also wise to consider whether such an arrangement is prudent to begin with when a dispute has yet to arise. There is no real way to determine in advance whether the nature of an employment dispute is something he or she would be comfortable resolving in the conference room rather than the courtroom.
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