Sunday, December 16, 2007

Arbitration Policy Not Enforceable as Agreement

If you have a handbook policy referring to a separate arbitration agreement, a court will expect to see a separate arbitration agreement if the employer tries to enforce it. So, if an employee does not sign the separate agreement contemplated by the policy, the employer should not expect the court to consider the short policy as evidence of an agreement to arbitrate. That's what the court of appeal said in Mitri v. Arnel Management Co, here.
This case is NOT saying that an arbitration agreement cannot be contained within a handbook. Rather, this case says that if the employer says there is a separate agreement in its handbook, the employer should ensure that the separate agreement is signed.

DGV