So, What Is the arbitration agreement? This is a document that talks about an agreement that two or more parties will not file a dispute to the court. This agreement usually is used in a larger contract in which certain parties might have a certain dispute about certain performance, illegal treatment or others in the workplace or due to faulty products.
By signing the agreement, you will give up certain rights and also gain benefits at the same time apart from its pros and cons. For example, you are applying for a job, and then some companies might want you to agree with the arbitration agreement employment. Usually, this agreement will be signed at the beginning of the business relationship. Usually, this is stated at the end of the larger file of the contract. Usually, the term used is “employee arbitration” or “dispute resolution” agreement.
Some of the advantages of signing this agreement are:
- Arbitration is mostly less expensive and faster than bringing it to the court
- You don’t have to be publicly testified. This dispute will not be in public court records.
- You can pick who can decide your dispute. Maybe you want to point a decision-maker that has a specialty or knowledge about this case.
- Most companies don’t want to hire an employee if they don’t want to sign this agreement.
- For companies, they have more control over the contract and this can protect their business from certain parties that are trying to disturb your business balance.
Our template will help you set the contract so you can secure your position and company from unnecessary conflict. You can check our templates that come in various formats and usage. We understand that there are certain disputes in the workplace which are needed to be brought to the court. Most companies opt for finding a solution outside of the court to avoid other damage to their company and other legal consequences. However, you need to think about the pros and cons first before signing the agreement.
What Are The Elements of The Agreements?
There are some important elements you should include. Because this is an agreement, you should make sure that this is understandable from its language and also its format:
- Decide which state law they want to follow and it should be stated in the agreement.
- Write down why the dispute arose and steps to do to prevent such things in the future.
- The location where the agreement is signed
- The agreement validity until its expiry date should be mentioned.
- If you need to, mention trade secrets and confidentiality.
- Add limitations, fees, and damages in the agreements
However, remember that this arbitration agreement will be applicable when both parties sign the contract apart from the possibility of certain accidents and disputes that will occur in the future.
Now you have to understand the importance of this agreement. If you are planning to make this agreement, we provide you the best arbitration agreement templates that you can download for free.