Alternative Dispute Resolution PDF

RUNNING HEAD: ALTERNATIVE DISPUTE RESOLUTION 1
Alternative Dispute Resolution
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ALTERNATIVE DISPUTE RESOLUTION 2
ALTERNATIVE DISPUTE RESOLUTION
INTRODUCTION
Arbitration clauses are current practices done by different employers. This usually involves or
dictates the employees and employers to arbitrate legal disputes instead of seeking the court action.
However, this is an optional exercise and very few employers forcefully impose the arbitration clauses to
their employees. Despite this exercise being on the rise, it still remains controversial since studies have
shown that it compromises with the rights of employees. All the employees are therefore asked to
understand the implications of including arbitration clauses in their contracts being they proceed to sign
them. Within the framework of this assignment, there will be an analysis of how this clauses
compromise the rights of different individuals.
DISCUSSION
There are different ways in which arbitration clauses compromise the rights of employees. Most
of the employees are denied the right to adequate compensation. According to a study by Shore,it was
established that there are instances in which employees win disputes against their employers (Shore,
2010). During such a scenario, the employee is supposed to be compensated fully like in the case of an
accident. However, this is not usually the case in case there existed a mandatory arbitration. The
employee’s payout in such a case is only 16% of the damages.16% is quite low and this therefore denies
the employees their right to a dutiful or full compensation.
Arbitration clauses have denied employees the right to bring up claims when their rights are
violated. According to studies, arbitration claims have the tendency to suppress claims. A study by Colvin
in 2014 for example established that Attorneys rarely take up claims that are subject to arbitration
claims (Colvin & Pike, 2010). The study also established that the arbitration claims have the tendency of
not succeeding whenever they are brought forward. The compensation from such claims is also very low