Companies should not view arbitration proceedings as a means of restricting employees` rights, expressing concerns or being compensated in the event of a problem. Instead, employers should view the process as a dispute resolution system that does not include the courts. Employers can see many benefits by requiring employees to sign arbitration agreements. But bad writing can be as dangerous as not having any at all. These are proposals that employers should consider when designing arbitration agreements that are fair to workers and withstand most challenges: however, not all arbitration agreements are the same. Indeed, courts regularly expel those whose judges decide are extremely biased or defective to employers. in legal proceedings, the damage must be proved with sufficient certainty; In arbitration proceedings, evidence of damages may be based on speculation and presumptions. As we recently reported, the U.S. Supreme Court recently stated in Epic Systems Corp. v. Lewis, No.
16-285 (U.S. May 21, 2018) (consolidated cases) that employment contracts requiring employees to resolve disputes individually are not contrary to national labor relations law. Epic Systems` decision paves the way for employers to require employees to sign arbitration agreements that waive workers` right to partner with other employees to bring a class or class action lawsuit in court. Instead, employee claims would be individually encircled as part of an arbitration proceeding. Con: Although it is not mandatory, most parties choose to be represented by a lawyer. Therefore, the cost savings of not hiring a lawyer are often not realized. And unlike court fees, which are relatively nominal, arbitration fees usually come with significant registration and arbitration fees. For example, the American Arbitration Association (AAA) collects an administrative fee based on the amount of the claim or lawsuit, which ranges from $975$US for claims under $10,000 to $8,700 $US for claims between $500,000 and $1 million. In addition, the parties must indemnify the arbitrator or arbitrators for their time. An arbitrator`s fees can exceed $1500 per day.
As a general rule, the dispute concerns contested appeals before the courts, which involve an appeal, a dispute and the use of the specific body, i.e. the Tribunal for the settlement of the conflict or dispute. On the contrary, arbitration is a procedure in which a dispute is submitted, by mutual agreement, to one or more arbitrators who make a binding decision on the dispute. When choosing arbitration, the parties opt for a private dispute resolution procedure instead of going to court. Moreover, each case is different and, therefore, its method of dispute settlement should be considered in both the light of the actual and legal context of the dispute. One size may not be suitable for everyone. The pros and cons of using arbitration as a method of settling a dispute are probably in the eyes of the viewer.. . . .