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What's the arbitration agreement in an employment contract?

5.0 (1)

Arbitration

Employment Contract

California

I am currently in the process of negotiating an employment contract with a new employer. I am concerned about the arbitration agreement in the contract, as I am not sure what it is or how it could affect me in the future. I want to make sure that I understand the implications of the arbitration agreement before signing the contract.

Gagandeep K.

Answered May 27, 2023

An arbitration agreement is a legally binding contract between two parties or more so in this case between you and the employer. In the Arbitration Agreement both parties agree to use alternative dispute resolution (e.g., mediation, settlement conferences, neutral evaluation, arbitration) rather than pursuing civil court litigation in case a dispute arises. The Arbitration Agreement typically describes the scope of the disputes covered as well as the process, procedure and other requirements related to arbitration. You can read more about Arbitration Agreement here https://www.contractscounsel.com/t/us/arbitration-agreement.

Why do companies use arbitration clauses?

View Donya G.
4.9 (61)

Arbitration

Arbitration Agreement

Connecticut

Trying to better understand them.

Donya G.

Answered Mar 30, 2021

Companies use arbitration clauses to get a resolution to the dispute faster and sometimes because it can be less costly. You should ensure that the clause protects you as much as possible. DISCLAIMER The answers to these questions do not constitute legal advice and does not create an attorney-client relationship with the attorney and anyone who reviews these responses.

What is an arbitration clause?

View Donya G.
4.9 (61)

Arbitration

Arbitration Agreement

Connecticut

I want to better understand what these are and if I need to include them in my agreement.

Donya G.

Answered Mar 30, 2021

An arbitration clause allows the parties to have their disputes heard by an Arbitrator (trier of fact, similar to a Judge), instead of going to court). When parties disagree, they can either go to court (the average case takes about 2 years to be heard) or to have their case tried before an arbitrator (ususally a much quicker and sometimes less expensive option). DISCLAIMER The answers to these questions do not constitute legal advice and does not create an attorney-client relationship with the attorney and anyone who reviews these responses.

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