Originally from Employment Arbitration - 2nd Edition

A Model Agreement and Arbitral Process

Thomas E. Carbonneau

The content of the final section indicates how interested parties might undertake to establish a process of employment arbitration. The approach suggested here can be compared and contrasted to or joined with the AAA framework that was described in Section XVIII. The recommendations and proposed agreement are meant to service the interests of both parties to the employment relationship. They demonstrate how an employment arbitration process can be implemented in an effective, fair, and legal fashion. As a consequence, they point to legal and practical pitfalls that could hinder either side’s position. Finally, it is not possible to take all circumstantial variations into account; therefore, the commentary and text focus upon commonplace circumstances.

(i) Basic Considerations

(1) Employment arbitration offers employers a number of key benefits. It allows them to avoid the expense and the depletion of resources associated with court litigation. Also, it at least reduces the destructiveness of litigation and fosters a perhaps more positive experience and outcome. By contrast, court litigation can stymie dispute resolution, lead to counterproductive results, and force the parties into a negative settlement.

There is little room in the competitive business arena for the squandering of resources or for an unyielding litigious battle. Pragmatism, efficiency, and functionality are the watchwords of any going business enterprise. Employment arbitration can provide economical and workable results that simultaneously safeguard employees’ rights and the goals of the company.