Small businesses, especially new ones, will encounter problems at some point. To keep your business afloat, you need to be prepared for all eventualities. One kind of problem you need to be ready for include labor disputes with your employees. Of course, you may be doing your best to be fair and just with your employees, but a problem may still arise.
Instead of Litigation
To settle such dispute, you may think of using litigation. This legal method, however, can be troublesome and costly. Litigation cases can take years to be settled and it can be quite messy, taking time and focus away from your business. Instead of litigation, you can consider using arbitration instead.
Alternative Dispute Resolution
Arbitration serves as an alternative dispute resolution to litigation. Arbitration involves no judge nor jury, but only an independent arbitrator who will hear the testimony of opposing parties and make a legally binding decision. In this sense, arbitration costs much less than litigation and has more flexibility.
Easier and More Effective
Many companies employ arbitration over litigation due to its effective, advantageous, and private nature. With arbitration, you can easily resolve complex disputes that may have to do with technicalities. You will be able to choose an arbitrator that has expert knowledge regarding the topic in dispute.
Add an Arbitration Clause
Now, you can pick arbitration as your official method of resolving labor disputes. You can craft employment contracts that include an arbitration clause. This clause can protect you, your business, and your employees from the ramifications of discrimination, wage and hour violation, wrongful termination, and sexual harassment cases.
You can find many lawyers offering arbitration and mediation services. You can approach them for help regarding using arbitration for your small business. The cost of arbitration, although significantly less than litigation, can still reach $9,000 for an $80,000 contract claim, for example. Arbitrator fees can even reach up to $10,000.
You can perform more research to be confident in arbitration as an alternative dispute resolution.