subject: Arbitration: Resolving Dispute Between Workers And Employers [print this page] Because court litigation is usually expensive and may drag on for years, arbitration is one of the most preferred alternative methods to resolve a dispute between employers and workers.
The Process of Arbitration
According to employment attorneys, arbitration is a formal way to resolve a dispute between workers and employers. But instead of a judge, hearings are conducted by arbitrators who are usually lawyers or professionals who specialize in a certain field.
Another difference between arbitration to court litigation is that involved parties can present all forms of evidence, even if some of these are based on questionable documents that would be typically rejected in a regular court.
To make arbitration legally enforceable, there should be an employment agreement (signed beforehand) between workers and employers stating that this process will be used in the event of a dispute.
Advantages of Arbitration
One of the most common reasons why companies and workers prefer arbitration over court litigation is that they can reduce their expenses since the process will usually last for months compared to a regular court hearing which may drag for years.
In arbitration, out-of-pocket expenses are also reduced because involved parties will not have to pay for transcripts and stenographic fees.
Another advantage of arbitration is that time-consuming processes such as motions, interrogations, and depositions are usually eliminated. In this way, both parties can resolve a dispute within just several months.
Because this procedure is held in a private conference room, both parties will enjoy privacy unlike in a trial where all the details of a dispute will be revealed to the general public. Also, there is a binding confidentially agreement that will prohibit both parties to reveal the details of their case.
In some cases, arbitration is better than court litigation since arbitrators are usually professionals with significant expertise to a certain industry, which means that they have deeper understanding to a certain problem or dispute.
Also, most arbitrators are known to make compromise decisions to satisfy both parties. With this, the party with a weaker complaint will most likely also benefit from the arbitration process.
Disadvantages of Arbitration
Despite some significant advantages of arbitration, this process also has its setbacks, including the provision that allows arbitrators not to give formal reasons for their decisions. With this, the losing party cannot make an appeal because they do not know what to appeal for in the first place.
However, in some extraordinary circumstances, an appeal will be granted if the arbitrators are dishonest and bias.
Because arbitration does not include juries who have the tendency to make a humanized decision, some legal experts believe that the resolution in this process is usually based on the rigid technicalities of law to the extent that the decision may lean more toward companies rather than workers.
Also, arbitration may not be advisable in an employment dispute that involves gender discrimination and sexual harassment because many states do not award victims with punitive damages (which is three times the amount of the real damages) and other special damages.
