Legal Term
arbitration cost sharing in employment agreement
Legal Definition
A contractual provision in an employment agreement that allocates the financial expenses of arbitration proceedings between the employer and employee, including filing fees, arbitrator compensation, administrative costs, and potentially legal representation fees, often specifying equal division or other arrangements.
In Plain English
This is a rule in your employment contract that says who pays for the costs when you and your employer settle a dispute through arbitration instead of court. It might split the bills evenly or make one side cover most or all of the expenses.
Example in a Contract
Section 15. Arbitration Cost Allocation. The parties shall bear the costs of arbitration equally, including the arbitrator's fees and the administrative fees imposed by the arbitration institution. Each party shall be responsible for its own attorneys' fees and related expenses, unless the arbitrator determines that a different allocation is warranted under applicable law or due to the prevailing party's status.
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