Howard Levitt: If your contract has an arbitration clause, here's what you need to know

It is also much faster. Your case can be resolved in a matter of a few months. By contrast, due to the current backlog in the court system, it often takes years to appear before a judge.employment law

Cost is another important consideration. The arbitration process allows for flexibility over who pays the costs of the arbitrator, the venue, and the winning party’s legal fees. The parties can also limit their costs by foregoing complicated legal manoeuvres which occur in court such as the discovery process.Article content, callously terminated you, or if you are facing harassment at work. Typically, you need a lot of evidence to prove these types of allegations.

The other big downside of arbitration is that decisions are almost always final. Appeal avenues in arbitration are limited. If you aren’t satisfied with the decision and you think the arbitrator made a mistake, you won’t have effective recourse. In court, you can take your decision to a higher court in broader circumstancesArticle content

In the decision, a group of Ontario delivery drivers employed by Uber Eats tried to take their employer to court for failing to pay minimum wage, overtime pay and vacation pay. However, Uber’s arbitration clause prohibited them from suing in court. The clause required the employees to travel to the Netherlands and pay an up-front administrative fee of US$14,500 just to start the arbitration process, which represented most of the employees’ annual income.

Source: Law Daily Report (lawdailyreport.net)

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