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Employment arbitration: What you need to know

When you become employed with a company, it is standard procedure to sign a whole host of documents and contracts, but often you are unsure of exactly what you are signing. It is important to always pay close attention to what you are signing because you might come to regret it later. This is especially true when it comes to employment arbitration agreements. It can mean that you may be powerless to press legal charges against your employer further down the line.

What is employment arbitration?

Arbitration means that instead of a complaint being examined by a court, it will be instead heard by a neutral third party, known as an arbitrator.

Disadvantages of arbitration for the employee

This can have negative consequences for you as an employee, because you may not be able to seek the result you want. Juries can be advantageous for an employee because they can express more sympathy than that of an arbitrator. Arbitration also requires less evidence to establish a case, therefore your situation may not be examined well enough.

Advantages to arbitration for the employee

Your employer is likely to ask you to sign employment arbitration papers because they want to save money on court proceedings. As well as saving money themselves however, you will also save money by going through arbitration as opposed to a court procedure. They are also much more efficient and give a quicker result.

If you are confused about the arbitration terms on your contract or want to look into your legal options, it is advisable to speak to a legal practitioner who can help you.

Source: Findlaw, "Employment arbitration agreements," accessed Oct. 06, 2017

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