Employment Mediation Arbitration Agreement: What It Is and Why It Matters
When it comes to employment disputes, there are several ways to resolve them. One of the most popular methods is through mediation and arbitration, which can save both parties time and money compared to traditional litigation. However, before entering into mediation and arbitration, employers and employees alike need to sign an employment mediation arbitration agreement.
What is an Employment Mediation Arbitration Agreement?
An employment mediation arbitration agreement, also known as an EMAA, is a contract that outlines the terms of the mediation and arbitration process. It specifies that any future disputes between the employer and employee will be resolved through mediation and/or arbitration instead of going to court.
This agreement is typically signed by the employer and employee at the beginning of the employment relationship. The idea is to set out a clear and efficient process for resolving disputes that benefits both parties.
Why is an Employment Mediation Arbitration Agreement Important?
There are several reasons why employers and employees should consider an EMAA as part of their employment relationship. Here are a few of the most important benefits:
1. Faster and more efficient resolution: Mediation and arbitration can be completed much quicker than traditional litigation. This means that employers and employees can resolve disputes and move on from them without a long and drawn-out legal battle.
2. Lower costs: Mediation and arbitration are typically less expensive than litigation. The fees for mediators and arbitrators are often lower than those for lawyers. Plus, the process is generally less time-consuming, which can lower overall costs.
3. Increased privacy: Mediation and arbitration are typically confidential proceedings. This means that the details of the dispute will be kept private, which can be important for both employers and employees.
4. Flexibility: Mediation and arbitration can be tailored to meet the needs of both parties. For example, the parties can choose the mediator or arbitrator they prefer, and they can agree on the location and timing of the proceedings.
5. More control: With mediation and arbitration, the parties have more control over the outcome than they would in a court proceeding. This means that they can come up with creative solutions that a judge might not be able to order.
What Should an Employment Mediation Arbitration Agreement Include?
An EMAA should include several key components. These include:
1. A statement that the parties agree to submit any disputes to mediation and/or arbitration.
2. A description of the mediation and arbitration process, including who will serve as the mediator or arbitrator.
3. A statement that the decision of the mediator or arbitrator will be final and binding.
4. A statement that the parties waive their right to a jury trial and any other rights they may have in a court of law.
5. A confidentiality clause that ensures that the proceedings will be kept private.
6. A statement that the agreement is enforceable under the law.
Wrapping Up
An employment mediation arbitration agreement is an important contract that outlines the terms of the mediation and arbitration process. It`s beneficial for both employers and employees because it can save time and money, increase privacy, and give the parties more control over the outcome. If you`re an employer or employee, you should consider including an EMAA as part of your employment relationship.