Employers have a duty to ensure they comply with all required laws related to employment. Employees have the right to take legal action to get what they’re due under the law.
Some companies use employment contracts to govern the relationship between the business and employees. Having an arbitration clause in the employment agreement is beneficial because it keeps the matter out of open court.
Arbitration varies from case to case
When there’s a mandatory arbitration clause in the employment contract, that’s what will happen to resolve the matter. If there’s not a mandatory arbitration clause, it’s up to both sides to agree that they’ll go through arbitration.
During the arbitration process, both sides can tell their side of the matter. These sides are weighed against the applicable laws so the arbitrator can make a determination about what must happen.
Some areas where arbitration may help to resolve employment disputes include:
- Compliance with contract terms
- Wage and hour complaints
- Issues with workplace conditions
It might also be possible for other issues to be resolved in this manner, but it depends on the situation. Typically, arbitration is binding, so both sides will have to comply with the decision of the third-party neutral. It is possible to appeal these decisions, but the process usually results in a mutually agreeable decision.
Working with a third-party neutral who’s familiar with the labor and employment laws in your area is beneficial. They can work toward a suitable resolution that enables businesses to close out these problematic employment matters without having to go through a long litigation process.