It is normal for people in the workplace to be involved in various disputes, considering that they are often pressured to meet a certain deadline or to come up with a reasonable strategy which can help the company gather many clients.

As an employer, you should make sure that these disputes are handled properly. You can ask your workers to sign an employment arbitration agreement, which will enable parties to solve workplace disputes without having the need to file a court case.

If your employees have signed the agreement, it will mean that they shall forego the right to sue you or their co-employees when a problem arises. Instead, parties involved in the problem will try to resolve it with the help of an unbiased third person called the "arbitrator."

Basics of Arbitration

Arbitration is known as a method that is used to resolve problems outside of the court. The arbitrator will be tasked to listen to the parties involved in the dispute, study all the pieces of evidence that were presented, and come up with a reasonable solution.

This process is less formal and expensive compared to a court trial or hearing, but is more formal compared to negotiation or mediation.

In addition, it does not cover all kinds of workplace disputes. For example, an employee who was subjected to discriminatory practices is still allowed to file a complaint with the Equal Employment Opportunity Commission (EEOC). The agency can then file a court case against the employer if it determines that discrimination occurred in the workplace.

Making an Arbitration Agreement

You and your employees can negotiate the terms that will be included in the agreement so that it will be fair for both parties. Here are some of the details that will be likely covered by the agreement:

  • Confidentiality issues- In arbitration, parties may need to disclose certain information regarding the company's business operations and their personal interests. Details that will be revealed by the parties involved should not be revealed to people who were not involved in the dispute.
  • Arbitrator- Both parties may be given a chance to choose the arbitrator.
  • Cost- Because you are the one who want to make an arbitration agreement, you should be prepared to shoulder the expenses that will be incurred whenever this process takes place.
  • Legal help- Although the process is less formal compared to a court hearing, parties are still entitled to seek legal representation from a Los Angeles labor attorney. This legal expert will help you voice out your grievances and determine if you have violated the rights of your employees.