Employment agreements and contracts can be very useful tools for both employers and employees. They can define compensation, specify certain workplace policies and identify pieces of information that is considered confidential and protected.
If either party fails to comply with the terms set in an employment contract, there may be grounds to take action. It may be easy to assume that filing a lawsuit and going to court is the most appropriate course of action because that is what we often read about in the news. However, many employers take steps to protect themselves from lawsuits by including an arbitration agreement in an employment contract. Any person who has signed or will be signing an employment contract should be aware of what this clause means.