The Manager's Pocket Guide to Employee Relations

External ReviewAdvisory Arbitration

Let’s first make a distinction between advisory arbitration and the more common binding arbitration. In advisory arbitration, the arbitrator will state his or her findings: “It appears to me that there is a finding of fault and here is what I recommend.” In binding arbitration, the arbitrator will state: “It appears there is a finding of fault and here is what you will do.” As you can see, the difference is significant. In advisory arbitration, the company is not obligated to comply but usually does if the arbiter’s decision and reasoning is sound. To do otherwise would make a sham of the process, and your employees would probably view it as such. In this guide I will discuss only advisory arbitration because ...