Definition
A contract provision requiring disputes be resolved through arbitration rather than court—basically, the company's get-out-of-lawsuit card.
Example Usage
Your employment contract contains an arbitration clause, so no matter what happens, your case goes to a private arbitrator who favors employers.
Origin
Legal and employment law terminology, popularized since 1980s
Fun Fact
Studies show arbitration outcomes favor employers in 70% of employment disputes.
Source: Employment law and labor relations
Related Terms
Translate This Term
See “Arbitration Clause” in Corporate Speak, Gen-Z Slang, Pirate Speak, and more.
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