Employee vs Employer: When is Arbitration a Better Option to Resolve Disputes?

Employee vs Employer: When is Arbitration a Better Option to Resolve Disputes?

Disputes between an employer and their employee are sometimes inevitable. When it happens, both parties want to make sure they’re able to exercise their rights and arrive at an outcome that favors their cause. Bringing the issue to court can be financially and personally troublesome.

As an alternative, both parties should first consider judicial arbitration and mediation services. This option is open to those who are willing to settle their dispute in a peaceable manner.

Here are some things you need to know about arbitration and how it’s better than proceeding to court.

What is Arbitration?

Arbitration can only happen if both parties involved in a dispute mutually agree to go this route. They need to sign a clause before the case could proceed. The “aggrieved party” will submit a written claim to which the other party has to respond. They need a “neutral arbitrator” to see both claims and make a decision from that. Witnesses should also be present and meet the arbitrator and the pieces of evidence will be “taken under oath”.

For employers, going to court is not preferred because of the costs and length of time involved. Arbitration is still a formal process, but takes less time. Employers also value the fact that arbitration is a private settlement and rarely goes public.

For employees, the benefit of arbitration is the same. Employees also value their money and time, so they’d naturally want a faster and less costly proceeding. Some employees, though, will worry that arbitration may not be good for them if they signed a contract with an arbitration clause before they become part of a company. It’s still advisable to read employment contracts and not sign anything that’s against one’s will.

lawyer reading a contract

Will You Need a Lawyer?

It’s important to know that both parties don’t need attorneys to go with them during the arbitration. A chosen arbitrator is present during the proceeding and both parties can explain their side of the story. Once the arbitrator made a decision, it’s final and no one can appeal.

Both parties can also choose who the arbitrator will be and this is a huge benefit for them. Compare that to litigation, where they can’t choose the judge and decide on the jury selection.

Will You Choose Arbitration?

As mentioned above, arbitration is a faster, less expensive process. It’s also private, which can be an appealing factor to both parties especially if the dispute is sensitive. The arbitrator can also decide on certain matters that judges can’t.

Lastly, both parties can come into a settlement. This is good if both just want to get the dispute over and done with. With less downtime, they can continue with their lives instead of presenting the case in front of a judge and prolonging their agony.

Choosing arbitration has clear benefits, financially, emotionally, and physically. But it can only work if both parties are willing to resolve their dispute in a more peaceful and professional fashion. It’s also suitable if the plaintiff and defendant wish to preserve their relationship.