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The Manager's Pocket Guide to Employee Relations by Terry L. Fitzwater

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Serious cases

Normally, the use of advisory arbitration is limited to issues of “extreme importance or seriousness” (termination) because there is a fee for the services of the arbitrator. The employee should pay a portion of the fee to discourage capricious use of arbitration. A rate of one-half the cost of arbitration is recommended, with the company paying the other half. If the fee is $600, for example, the company will pay $300 and the employee will pay $300 to get the case to arbitration. This 50% arrangement creates a sense of ownership and makes the employee think, before bringing the action, about the relative merits of the need for third-party review. However, if the arbitrator finds the company at fault, the company should consider ...

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