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Benefits of an arbitration clause in an employment contract

Litigation against your business in Texas may lead to damaging media attention, even when an employee’s complaint is proven to be invalid in court. By drafting employment contracts with very specific terms, you may be able to prevent opportunities for employees or former employees to file unwarranted lawsuits against your company. At the Jackson Law Firm, we often assist companies in creating employment contracts with provisions that are perceived as beneficial to workers while protecting employers’ interests.

The Houston Chronicle states that arbitration clauses are legally binding, according to a ruling by the U.S. Supreme Court, and they may be used in individual employment contracts as well as collective bargaining agreements. Arbitration is typically settled much more quickly than litigation because it eliminates the appeals process as well as the potential for a protracted court battle. It also saves you and your employee the cost of court and attorney fees.

During the arbitration process, employee claims are heard by an arbitrator rather than a judge. This person must be a neutral party who can consider the dispute without bias toward you or the employee. No jury is involved in determining the outcome of the case. As in court, you have the opportunity to dispute the claim made against you and provide witnesses and evidence for your defense. You cannot force an employee to enter into the arbitration process against his or her will unless it is included in a signed contract. For more information about employment contracts and disputes, please visit our web page.

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