Relations · HR glossary

Arbitration

Arbitration is a dispute-resolution process in which an impartial arbitrator considers the parties' positions and makes a decision under an agreed or legally provided framework. Its binding effect depends on the arrangement and law.

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Example

A collective agreement sends an unresolved interpretation dispute to an arbitrator after the earlier grievance stages have been completed.

What to keep in mind

Arbitration differs from mediation, where the third party generally helps the parties reach their own agreement. Check jurisdiction, consent, procedure and any limits on enforceability before relying on an arbitration clause.

Further reading

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