Arbitration Clauses In Employment Contracts

In our daily practice, we see an increase in employment law disputes. Whether this trend is due to a social change (decreasing reluctance to let a difference of opinion escalate in court) or whether it is - quite profanely - due to the fact that more and more private individuals have legal expenses insurance, we cannot judge.

Employers, who are increasingly confronted with reference letter claims, bonus payment requests, (allegedly) abusive dismissals and other claims, are asking themselves whether there are efficient and up-to-date alternatives to the traditional state court procedures, which are perceived as slow, expensive and formalistic.

Would it be possible and sensible to resolve such employment law disputes in arbitration proceedings? In this blog, we show in which situations arbitration clauses are permissible. We then set out the advantages and disadvantages of arbitration proceedings in employment law disputes.