• Benefits of Arbitration

Essentials of an Employment Contract

An employment contract can be defined as an agreement made by an employer and an employee that forms the basis of an employment relationship and legally binds the two. It is necessary for the agreement to be in writing in two originals. One copy is given to the employee while the other remains with the employer. When the employee accepts the employment offer, the contract begins. No changes can be made to a signed employment contract without the employee’s consent. These amendments can only be written. The rights and obligations of the employee are written in the contract.

Things to find in an employment contract

The day when the employment starts

The exact date of when the employment starts has to be in the contract to mark of its beginning. The day does not necessarily have to be a workday. Failure to go to work on the first day can result in justified employer withdrawal from the contract.

The form of work

The employer pledges to carry out a particular type of work for the employee. The description of this position is found in the contract. The detailed work description is important because it prevents the employer from giving the employee work that is different from what they signed up for. The contract may also describe the content of the employee’s work.

Address of the workplace

The contract should provide information about the address where the employee will work. The places mentioned in the agreement have an implication on the likelihood of the employee to get transferred to any of the included locations.

Salary paid to the employee

The employment contract includes information about the amount of money that the employee will be paid. For instance, the gross salary, which is subject to health insurance and tax without the exclusion of social insurance. The figures in the contract can be one or several and in the form of tax deductions, basic remuneration and existing bonuses. The contract outlines the exact day of payment and the means used to facilitate the payment. This is basically the day when the employee receives the payment in cash or through her or his bank account. In order for the employer to change the salary of the employees, consent by the latter has to received in writing. In a case where the salary is placed in an attached document, the employee’s consent is not relevant to allow for changes to be made.…

Benefits of Arbitration

Arbitration refers to the process whereby the two parties who signed a contract table disputes that arose between them to an unbiased third party for resolution. Arbitration is based on the consensus of the disagreeing parties to arbitrate. The contract the two signed contains a binding clause of arbitration that obliges them to give in to arbitration. Alternatively, the two may decide through the way of Submission Agreement to arbitrate their disagreements as they arise. Without arbitration, the disputing parties will be forced to resolve the disputes through litigation. The latter is an inefficient, unwieldy and expensive process that can be avoided if the two decide to arbitrate.

Advantages of arbitration

Confidentiality

Arbitration is different from judicial proceedings in that, proceedings in arbitration happen in private. This confidentiality is important especially when it comes to disagreements that are related to matters that are commercially sensitive. In most instances, the individuals involved prefer to leave matters of such a nature from the public domain.

Pundit arbitrator

The arbitrator who is chosen to oversee the process is selected based on the technical expertise, qualifications, and specialization that comes with the knowledge that tackles the subject matter of the disagreement. Since the arbitrator is an expert in arbitration, time and funds are not wasted on trying to make her or him understand. A popular institution may also be given the work of choosing a suitable arbitrator.

Autonomy of both parties

The parties may maintain some control over solving the dispute. They can decide on the route to take on all procedural and evidential matters of the arbitration proceedings. By actively participating in how the proceedings are managed, the parties are able to save funds and time spent in the resolution of the disputes.

Finality nature of the award

The arbitrator makes awards that are considered final and therefore binding. This can only be disputed in particular limited circumstances. However, in an instance where a party feels that an erroneous award was made, the absence of a real right of appeal may be unpopular.

Administration of awards

It is easier to execute an arbitration award in jurisdictions separate from a court order. This is due to its appealing nature in international commercial disputes. Arbitration has grown in popularity and prevalence. However, it is still necessary to seek the opinion of a lawyer when it comes to finding out the type of dispute resolution that is best suited to said circumstances…