Arbitration is a form of alternative dispute resolution (ADR) that is increasingly being used instead of going through the public courts and tribunals. There are several reasons that you may elect to use arbitration in the workplace context, whether as a mandatory clause or voluntarily when a dispute arises:

• Unlike mediation, where parties seek a compromise without being required to settle, arbitration delivers a binding decision determined by a neutral third-party arbitrator with limited grounds for appeal.
• Unlike other civil litigation or employment disputes which are fought in open court, the arbitral process is conducted in private and is highly confidential.
• Arbitration often provides the possibility to engage a neutral arbitrator of choice with subject-specific expertise.
• The parties generally have greater flexibility in deciding the venue, language, and both the choice and number of arbitrators.

However, there are certain workplace dispute scenarios where arbitration is not appropriate. For example, arbitration is not available in the context of statutory claims which are required to proceed through the employment tribunals in accordance with open justice principles. This also applies to unfair dismissal and discrimination cases.

Arbitration often comes with greater costs compared to traditional litigation. Nonetheless, some employers consider that the confidentiality of the process and the reputational protection it offers generally outweigh those additional costs.

Our experienced team can advise on whether arbitration is an appropriate option for your employment contracts or for an existing employment dispute. We will guide you through any legal and strategic considerations before supporting you through the full arbitral process, drawing on our experience in handling complex employment disputes.