By Oyetola Muyiwa Atoyebi, SAN, FCIArb. (UK).

It is not uncommon to find dispute resolution clauses inserted in employment contracts, owing to the fact that it is a standard clause that prescribes the mode in which disputes arising between parties to the contract are to be resolved.

It is important for any contractual relationship to have an agreed approach to resolving disputes. Dispute resolution clauses in a contract are an important expression of the parties’ intention about how they’re going to work together. Dispute resolution clauses generally provide lower cost and timely approaches to resolving disputes, and may help preserve relationships as they can prevent the parties from resorting to litigation.

There is no single dispute resolution clause that can be used for all employment contracts or agreements, rather there are several dispute resolution mechanisms, ranging from mediation, negotiation, conciliation, arbitration and litigation, and a number of factors that should be considered in identifying which would be best applicable to the employment contract.

The content of the dispute resolution clause(s) should be deliberately and carefully considered and drafted to meet the particular context and needs of the nature of the employment.

This article is aimed at understanding the various dispute resolution mechanisms in employment contracts, and the Jurisdiction of the National Industrial Court in interpreting the clauses in employment contracts.

MEDIATION

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