3 Categories of Arbitration Agreements

boss scolding employeesDisputes between employees and their employer are unfortunately common nowadays. Most employment-related disputes are best settled out of court rather than through costly and lengthy litigation. This maintains a cordial relationship between the parties involved and ensures both sides get a fair settlement.

There are various parties that can handle your arbitration, but a union arbitration could be the best option. This form of institutional arbitration follows set procedures and has a written record. There are various forms of arbitration agreements the union might help you reach.

Here are the three primary categories:

Arbitration Clause Agreements

These are included in your employment contract before any disagreement arises. An arbitration clause defines the number of arbitrators, arbitration rules, and the arbitration process should any controversy arise. An arbitration clause agreement should, however, include details of all these elements for it to be legally enforceable.

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Arbitration Deeds/Submission Agreements

Unlike arbitration clauses, these agreements are made following a dispute. They are also longer and contain more terms compared to arbitration clauses. A submission agreement defines and specifies the scope of your arbitration and ensures that the eventual award is fair to both parties. Some states require an arbitration deed, even if you have an arbitration clause, for you to get an arbitral award.

Arbitration Agreement Integrated by Reference

There are instances wherein you may not have an arbitration clause, but your contract refers to a document that contains the provision. In this case, the arbitration clause is deemed to be incorporated into your main contract. An arbitration agreement integrated by reference is prevalent in construction agreements.

The arbitration agreements above might seem like straightforward contracts, but do not be fooled into thinking they are. Regardless of the arbitration agreement you have, it should be handled carefully to ensure that your interests are well-represented and protected. A lawyer is, therefore, an indispensable part of your team when coming up with and reviewing an arbitration agreement.