Arbitration Agreement Not To Be Discharged: What You Need To Know
An arbitration agreement is a legally binding contract between an employer and an employee, or two parties in a business relationship, to resolve disputes outside of a court of law. In recent years, arbitration agreements have become increasingly popular as a way to avoid the expense and hassle of litigation.
However, there are certain circumstances under which an arbitration agreement can be discharged. For example, if an employer violates the terms of the agreement, a court may find that the agreement is no longer valid. Similarly, if an employee can show that the agreement was signed under duress or coercion, a court may also find that the agreement is unenforceable.
Despite these exceptions, it`s important to understand that an arbitration agreement not to be discharged is a powerful legal tool that can provide significant advantages to both employers and employees. Here are just a few reasons why:
1. Speed and Efficiency: When a dispute arises, arbitration can be significantly faster than traditional litigation. This is because the process is generally less formal, and there are fewer procedural requirements that must be followed. As a result, parties can often resolve their dispute in a matter of months, rather than years.
2. Privacy: Arbitration proceedings are generally conducted in private, which means that the details of a dispute are not entered into the public record. This can be an especially important consideration for employers who are concerned about protecting their reputation.
3. Cost Savings: Litigation can be incredibly expensive, particularly for businesses. By contrast, arbitration is often significantly less expensive, as parties can avoid the costs associated with going to court, such as filing fees, expert witnesses, and extensive discovery.
4. Customization: Unlike court proceedings, arbitration can be tailored to the specific needs of the parties involved. For example, the parties can agree on their own rules of evidence, and can often choose their own arbitrator. This can help ensure that the proceedings are conducted in a way that is fair and efficient for both sides.
5. Finality: Once an arbitrator has made a decision, there are limited avenues for appeal. This can be an advantage for both parties, as it provides a clear resolution to the dispute, and can help avoid the uncertainty and expense associated with protracted litigation.
In summary, an arbitration agreement not to be discharged provides significant benefits to both employers and employees. By agreeing to resolve disputes through arbitration, parties can avoid the expense and uncertainty of litigation, and can often reach a resolution more quickly and efficiently. While there are exceptions to the enforceability of these agreements, they remain a powerful tool for resolving disputes in a way that is fair, efficient, and cost-effective.