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Simple English definitions for legal terms
interest arbitration
Read a random definition: curative statute
A quick definition of interest arbitration:
Interest arbitration is a way to solve a disagreement between two parties by having a neutral third party make a decision that both parties must follow. This is often used in labor law when negotiating a new contract. If the parties cannot agree on the terms, an arbitrator will decide what should be included in the new contract. This type of arbitration is most common in public-sector collective bargaining.
A more thorough explanation:
Definition: Interest arbitration is a type of dispute resolution where a neutral third party is chosen by the parties involved to settle the terms of a contract being negotiated. The arbitrator's decision is binding and final.
Examples:
- In labor law, interest arbitration is used to settle disputes between employers and employees over what provisions will be included in a new collective-bargaining agreement.
- Interest arbitration is most commonly used in public-sector collective bargaining.
These examples illustrate how interest arbitration is used to resolve disputes between parties who cannot agree on contractual terms. The arbitrator's decision is final and binding, which helps to avoid lengthy legal battles and allows the parties to move forward with their negotiations.