Why Employment Disputes Cannot Be Sent To Arbitration: A Legal Perspective

Arbitration has long been advocated as an efficient, private, and commercially sensitive method of resolving disputes. In many commercial contracts, arbitration clauses are standard. In recent times, there has been an increasing trend of inclusion of arbitration clauses in employment contracts/agreements. However, when it comes to employment contracts/agreements related to specific category of employees, the law takes a different view.

Are Employment Disputes Arbitrable?

The short answer is: no, not when the dispute is governed by a specific labour statute.

Employment relationships are not treated the same way as business-to-business arrangements. Disputes over wages, wrongful termination, unfair labour practices, or retrenchment are typically governed by specific legislation such as: