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Warning
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Simple English definitions for legal terms
rights arbitration
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A quick definition of rights arbitration:
Rights arbitration is a way to solve a disagreement between two parties by having a neutral third party make a decision that both parties have to follow. This is usually used when there is a violation or misunderstanding of a contract or agreement. It is also called grievance arbitration. The decision made by the arbitrator is final and binding.
A more thorough explanation:
Definition: Rights arbitration is a type of dispute resolution process where a neutral third party is chosen by the disputing parties to make a binding decision on a dispute related to the violation or interpretation of an existing contract or collective bargaining agreement.
Examples:
- Grievance arbitration: This type of arbitration involves resolving a dispute related to an alleged violation of an employee's rights under a collective bargaining agreement. The arbitrator makes a final decision on the meaning of the contractual terms.
- Interest arbitration: This type of arbitration involves settling the terms of a contract being negotiated between the parties, especially in labor law. When the parties cannot agree on contractual terms, an arbitrator decides.
These examples illustrate how rights arbitration is used to resolve disputes related to existing contracts or collective bargaining agreements. The arbitrator's decision is binding, meaning that both parties must abide by it.