Arbitration is a process
by which parties to a dispute submit their differences
to the judgment of an impartial person or group appointed
by mutual consent or through statutory provision. Many
employers now require an employee to sign a
mandatory
arbitration agreement. It may limit the employee’s
right to file charges against the employer in courts
and other related law bodies. The decision of an arbitrator
is usually final, subject only to confirmation by a
court, and reversal is limited to very narrow grounds.
Under arbitration, the plea is heard
by the third party, often a retired judge. Unlike
the court, a jury is not called in. A jury is said
to be more sympathetic to the cause of an employee
than an arbitrator would be, and the arbitration process
is generally more of an advantage to an employer than
to an employee. Unlike court trials, where an employee
might get a second chance to appeal, the arbitrator’s
decision is final and cannot be challenged.
Often, the arbitration agreement
requires the loser to pay for the cost of the arbitration
process, which can run into tens of thousands of dollars.
An employee has less access to company records than
in litigation, making it harder to discover evidence
against an employer, since the personnel files, records
and documents are with the employer.
Before accepting its terms and conditions
and signing an arbitration agreement, the employee
should read every document carefully and thoroughly.
Rather than showing ignorance about certain company
policies later, it is better to clear any doubts in
the beginning.
