Shrm Arbitration Agreement

Employment disputes are an inevitable part of any organization`s operation. These disputes can be costly and time-consuming if not handled properly. As such, employers often opt for arbitration agreements to avoid litigation. In this article, we will discuss the SHRM arbitration agreement and its benefits.

What is the SHRM arbitration agreement?

The SHRM arbitration agreement is a legal document that outlines the terms and conditions for resolving employment disputes through arbitration. The Society for Human Resource Management (SHRM) provides a sample arbitration agreement that employers can use to avoid going to court.

The agreement requires employees to waive their right to sue their employers in court and instead agree to resolve any employment disputes through arbitration. Arbitration is an alternative dispute resolution mechanism where a neutral third party resolves the dispute outside of the traditional court system.

Benefits of the SHRM arbitration agreement

1. Cost-effective

Arbitration is typically less expensive than litigation. This is because arbitration agreements provide a streamlined process, which eliminates some of the costs associated with court proceedings, such as lengthy trials and discovery.

2. Confidentiality

Arbitration is confidential, meaning that the details of the dispute are not made public. This can be beneficial to employers who want to protect their company`s reputation and avoid negative publicity.

3. Faster resolution

Arbitration generally takes less time than litigation. This is because the arbitration process is more streamlined than court proceedings, which can drag on for months or even years.

4. Final and binding

Arbitration decisions are final and binding, meaning that they cannot be appealed unless they have been procured through fraud, corruption, or undue influence. This provides a sense of finality to the dispute resolution process, allowing employers to move on and focus on their business operations.

5. Customizable

Employers can customize the SHRM arbitration agreement to suit their specific needs. This means that the agreement can be tailored to the employer`s industry, size, and location.


The SHRM arbitration agreement is a valuable tool for employers looking to avoid costly and time-consuming litigation. It provides a cost-effective, confidential, and streamlined dispute resolution process. Moreover, the agreement is customizable, allowing employers to tailor it to their unique needs. Employers should consider implementing an arbitration agreement to protect their business and ensure that employment disputes are resolved efficiently.