As an employer, you have the responsibility of notifying a work-related injury or occupational disease to the Commissioner for Labour. You must notify the Commissioner for Labour of an injury or occupational disease by submitting Form 2, Form 2A or Form 2B to the Commissioner pursuant to section 15 of the Employees’ Compensation Ordinance (Cap. 282). You must do so irrespective of whether you will be liable to pay your employee any compensation for their injury or occupational disease. The deadline for submitting the relevant form is 7 days for a fatal case and 14 days for a work-related injury case. If you, as an employer, fail or delay to notify the Commissioner for Labour or make any misleading or false statement to the Commissioner without reasonable excuse, you will have committed an offence under section 15 of the Employees’ Compensation Ordinance (Cap. 282). You may then be liable to prosecution and a maximum fine of $50,000 upon conviction. Bibliography: Labour Department, ‘Labour Legislation: Frequently Asked Questions about The Employees’ Compensation Ordinance, Cap. 282’: https://www.labour.gov.hk/eng/faq/cap282b_whole.htm

When your employee gets injured at work due to an accident arising out of and in the course of employment, they have the right to make an employees’ compensation claim against you for compensation pursuant to the Employees’ Compensation Ordinance (Cap. 282). Nevertheless, whether you are liable to pay them compensation, you are still responsible to take certain steps to comply with your responsibilities under the Employees’ Compensation Ordinance (Cap. 282): Notify the Labour Department of the incident in Form 2 or Form 2B pursuant to section 15 of the Employees’ Compensation Ordinance (Cap. 282): A deadline is stipulated for submitting the form – 14 days after the incident for a case of a work-related injury.Require your employee to go for a free medical examination by a registered dentist or a registered Western or Chinese medical practitioner named by youIf there is doubt, conduct a preliminary investigation of the incidentContact your insurer for any follow-up action that may be appropriateFormulate guidelines for the company in handling employees’ compensation cases: This would help you to handle these cases in an effective manner and ensure that any employees’ compensation payments and periodical payments are paid timely in accordance with the law. Generally, the employer is liable to pay certain payments to their employee who has sustained work-related injury: Medical expenses: This should be paid to your employee within 21 days from when your employee has submitted the medical expenses receipts to you.Periodical payments: The amount is calculated at four-fifths of the difference between your employee’s monthly earnings at the time when the accident occurred and during the period of their temporary incapacity.Compensation: The amount would be stated in Form 5 (Certificate of Compensation Assessment) as provided by the Labour Department. The compensation needs to be paid to your employee within 21 days from the date that Form 5 is

If your employee gets injured at work due to an accident arising out of and in the course of employment, you are generally liable to pay compensation to them pursuant to the Employees’ Compensation Ordinance (Cap. 282). Nevertheless, both you and your employee bear certain responsibilities when an accident has occurred. Employees’ responsibilities To ensure that your employee’s claim is processed smoothly, they may have already taken certain steps: Notify you or your representatives (e.g. the human resources department or the supervisor) of their work-related injuryReceive medical treatment or examinationProvide you with details of the work-related injury for the purpose of facilitating their report to the Labour DepartmentSubmit the originals of the sick leave certificates and medical expenses receipts (relating to any medical consultation and/or follow-up treatment) to youIf the case involves no dispute, attend medical clearance at the Labour Department’s Occupational Medicine UnitKeep a record of their employment information, such as addresses and names of the principal contractor and the immediate employer, written proof of the employer-employee relationship as well as their payment and attendance records Employers’ responsibilities On the other hand, you have a duty to ensure that the workplace is safe for your employees and to protect them from harmful accidents whilst they are at work. The general duty owed by you towards your employees includes: Providing a proper work systemProviding sufficient materialProviding effective supervision You are also responsible for notifying the Labour Department of any work-related incident in Form 2 or Form 2B (section 15 of the Employees’ Compensation Ordinance (Cap. 282)). A deadline is stipulated for submitting the form – 14 days after the incident for a case of work-related injury. If you fail to inform the Labour Department, you may be criminally liable to prosecution and a maximum

When a person suffers injury or damage partly due to his/her own fault and partly due to another person’s fault, there may have been contributory negligence. Contributory negligence refers to when the claimant contributes towards the cause of the accident. However, contributory negligence is not for the claimant to raise and prove. The defendant is the party who should be raising this point as a defence and proving the existence of the claimant’s contributory negligence. Although a claim for damages or compensation cannot be defeated due to the injured person’s fault, the amount of compensation recoverable can be reduced or recovery can be barred if the injured person’s actions increased the likelihood of the occurrence of the incident. The percentage or level reduced would usually be based on what the court thinks just having considered the share of responsibility for the damage of the claimant (i.e. the injured person). Contributory negligence is usually expressed in the form of percentage. For more details regarding the apportionment of liability in case of contributory negligence, you may have a look at section 21 of the Law Amendment and Reform (Consolidation) Ordinance (Cap. 23). It is also important to determine fault in an accident for insurance companies because the holder of the insurance policy may file an insurance claim for compensation that is covered under the policy. Hence, insurance companies would want to make sure that they would only be liable for the damages caused by their clients. They might do so by hiring defence lawyers to try to limit their responsibility as much as possible. In relation to the estimated amount of reduction of the compensation, it is best for you to consult a lawyer for better advice and estimation. Key takeaways Whether the compensation will be reduced would depend on whether there has been contributory negligence on the part of the claimant.The percentage/level reduced would be based on what the

If your employee is injured at work and they wish to claim against you for employees’ compensation as well as to claim against other relevant parties for personal injury, the legal procedures for the two claims are different. For work-related injuries, the Employees’ Compensation Ordinance (Cap. 282) governs the relevant legal procedure for employees’ compensation. For personal injuries, Practice Direction 18.1 sets out the relevant legal procedure. Legal procedure for employees’ compensation When an employee suffers work-related injury, the legal procedure for employees’ compensation is generally governed by the Employees’ Compensation Ordinance (Cap. 282). Even if your employee might have committed acts of negligence or faults at the time of the accident, you are generally liable to pay them compensation. Nevertheless, your employee is responsible for notifying you as soon as possible that they have sustained a work-related injury. You, as an employer, is also responsible for notifying the Labour Department of any accident relating to your employee (section 15 of the Employees’ Compensation Ordinance (Cap. 282)). Some common legal procedures for an employee’s compensation claim may include: The employer taking his/her injured employee to a clinic, a government hospital or an appointed doctor immediately for medical treatment.The employer informing the Labour Department of the injured employee’s work-related incapacity or death by submitting Form 2 or Form 2B within 14 days from the date of the accident.The employer notifying and submitting a copy of Form 2 or Form 2B, a copy of the identity document, the original medical certificate and the original medical expense receipts to the insurance company for the employees’ compensation claim.The injured employee attending a medical assessment or clearance at the Labour Department’s Occupation Medicine Unit.The employer sends the original Form 5 (Certificate of Compensation Assessment)

It is often difficult to estimate the exact amount of the compensation that a person may get from a successful personal injury claim as the circumstances of every case are different. It is best to consult a lawyer on how to commence a claim for damages and calculate the amount of the claim. Common elements considered Generally, when the compensation claim for personal injury is calculated, some common elements are considered: The past and future financial costs incurred from the injury sustained as a result of the accidentThe suffering and the pain that were caused as a result of the accidentThe interest accrued from the time when the legal proceedings beganThe financial loss suffered by the injured party as a result of the accidentLegal costs The main goal of awarding compensation to the claimant is to place them in the position that they would be in if the accident had not occurred, as long as monetary compensation would be sufficient in achieving this goal. Non-fatal claim For a non-fatal claim, the usual damages that are included in calculating the amount of the claim include: Damages for pain, suffering and loss of amenitiesLoss of earningsOther special damages or miscellaneous expensesInterest on these damagesThe legal costs incurred for the claimant Fatal claim For a fatal claim, the usual damages that are included in calculating the amount of the claim include: Damages for bereavement ($231,000 as of May 2021)Funeral expensesLoss of accumulation of wealthLoss of dependency by dependants (if any)Loss of services Other special damages or miscellaneous expensesInterest on these damagesThe legal costs incurred for the claimant Having calculated the amount of your intended claim, if it is $75,000 or below, the personal injury action should be commenced in the Small Claims Tribunal. If the amount is higher than $75,000 but not more than $3 million, then the action should be commenced in the District Court. If the amount is $3

Personal injury proceedings are generally governed by Practice Direction 18.1. Parties are always encouraged to settle their cases by methods other than litigation, such as mediation, negotiation and without prejudice correspondence. Litigation should be the last resort in a dispute. Common legal procedures in personal injury proceedings There are some common legal procedures in personal injury proceedings. They include: The parties attempting to mediate or negotiate so that the matter can be settled out of court.If mediation or negotiation fails, the claiming party initiating the proceedings at the suitable court based on their amount of claim: The action should be commenced in the Small Claims Tribunal if it is $75,000 or below, in the District Court if it is higher than $75,000 but not more than $3 million, and in the Court of First Instance of the High Court if it is $3 million or above.The parties attending the Check List Review Hearing, the Case Management Conference and the Pre-Trial Review.The parties attending the trial and presenting their case to a judge by adducing evidence and putting forward their arguments.The judge considering the evidence and arguments.The judge making a decision.The losing party being ordered by the court to pay the legal costs to the winning party: The costs would include the amount of money that the winning party has spent on hiring lawyers and preparing and hearing the case. The amount of costs depends on the length of the case, the amount of preparation work required and the complexity of the case. Important legal documents There are also some important legal documents that are relevant to the common legal procedures in a personal injury case, such as: Letter before Action (filed by the claimant)Constructive Reply (filed by the defendant)Writ of Summons: In commencing a personal injury action, a Writ of Summons is the appropriate mode. The Writ is required to be accompanied by the prescribed Form 16C for

When a person gets injured as a result of an accident, it can be considered a personal injury. Personal injuries are not limited to physical harm as they also include psychological harm. If you have suffered injury as the victim of an accident caused by another party’s fault, you may claim compensation by initiating a legal action for personal injury. Nevertheless, litigation is usually the last resort and most personal injury cases are dealt with by mediation or negotiation. When can I make a claim for personal injury? There are certain “causes of action” of the personal injury that you have suffered against which you can claim compensation for: Breach of a contractual dutyBreach of a statutory dutyNegligenceNuisanceTrespass on a person (e.g. physical attack)Someone who has injured you deliberately However, you cannot sue someone else for compensation if there is no such “cause of action” or if the accident did not involve that person’s negligence or fault. You might also lose your right to sue if you do not commence the personal injury proceedings within three years from the date of the accident. This limitation is stipulated by section 27 of the Limitation Ordinance (Cap. 347). How do I make a claim for personal injury? It is best to consult solicitors in all cases because they are experienced in handling personal injury claims. They will also be able to advise you on whether there are reasonable grounds for your intended claim and help you organise your evidence for presenting it to the other party and their insurers. It is important that once an accident has occurred, you keep as many records related to the accident as possible. The strength of your case may be affected if these records are incomplete or are not properly kept. Where you commence your legal action would depend on how much compensation you wish to claim: If the claim is $75,000 or below, you should commence your claim in the Small Claims Tribunal.If the claim

When a person gets injured as a result of an accident, it can be considered a personal injury. Personal injuries are not limited to physical harm as they also include psychological harm. For instance, a victim may suffer from Post-Traumatic Stress Disorder due to the distressing nature of the accident. Common examples of personal injury There is a wide range of common examples of personal injury. They encompass: Road traffic accidents: A victim can claim monetary compensation for their financial loss and personal injuries if they have been injured in a road traffic accident as a passenger, driver or pedestrian.Workplace accidents: The employer is generally liable to pay compensation to their employee under the Employees’ Compensation Ordinance (Cap. 282) if the employee dies or sustains injury due to an accident that occurs during or arising out of employment.Occupiers’ liability: Occupiers’ liability concerns the duty of care owed by those occupying a real property to people who have trespassed or visited in relation to accidents caused by the dangerous or defective condition(s) of the property. Occupiers’ liability is regulated under the Occupiers Liability Ordinance (Cap. 314) in Hong Kong.Medical malpractice: Serious injuries may be caused by the negligence of healthcare providers, which include nurses, doctors, hospitals and other medical professionals. However, it is important to note that a person should not sue a healthcare provider for medical negligence simply because the provider has failed to cure a medical condition. The person claiming damage(s) for medical negligence must suffer real harm caused directly by a substandard level of medical care.Products liability: Serious injuries in public places, at home or at work may be caused by defective and dangerous products or improper operation manuals and warnings. Businesses may be responsible for manufacturing, selling, designing or marketing these products, so they may be liable to pay

There are several ways in appointing arbitrators or mediators. This will depend on the circumstances that the parties are in. Arbitration is principally based on consent. Parties must agree on the appointment of arbitrators. This is similarly applicable to the appointment of mediators. Parties are free to agree on the appointment procedures as well, depending on the arbitration agreement that the parties have entered into. There are three main organisations in Hong Kong where you can find a list of arbitrators or mediators, namely, The Hong Kong Bar Association, the Law Society of Hong Kong,  and Hong Kong International Arbitration Centre (“HKIAC”). If parties cannot come to an agreement, HKIAC can appoint arbitrators on the behalf of the parties if the parties have chosen to do Institutional Arbitration. If there are no such agreements in regards to appointment of arbitrators, the court will appoint arbitrators for the parties, in accordance with Article 24 of the Arbitration Ordinance (Cap. 609). Example Party A and B have each appointed one arbitrator. They cannot come to an agreement in regard to the appointment of the third arbitrator. How should the third arbitrator be appointed? Normally, in such circumstances, the two appointed arbitrators will appoint the third arbitrator. Mediation, on the other hand, is not a formalistic process like arbitration. There is no obligation to appoint a mediator even if parties have agreed to mediate. In Hong Kong, the Joint Mediation Helpline Centre provides support services to assist SMEs in the mediation process, including finding a suitable mediator. Takeaways You may find a list of arbitrators or mediators by searching through: The Hong Kong Bar AssociationThe Law Society of Hong KongHong Kong International Arbitration Centre (“HKIAC”) References Hong Kong Bar Association: https://www.hkba.org/Bar-List/arbitrators Hong Kong Law

Alternative Dispute Resolution is a voluntary process where parties appoint a neutral third party to aside disputes between them, other than going to the court. This process is usually private. There are many forms of ADR. Mediation and Arbitration are by far the most frequently used forms of ADR. Other ADRs include inquiry, good offices, negotiation, conciliation. Mediation Mediation involves the use of a third party, whether that is an individual, a group of individuals, or an organisation, to encourage the contending parties to come to a settlement. A mediator takes an active role in mediation. He or she will seek to cajole disputing parties into accepting his or her own proposal. The mediator will also have the responsibility of attempting to reconcile different claims and improve the atmosphere of the discussions. Arbitration This is a process whereby the disputing parties appoint a panel of arbitrators, who may be judges, lawyers or experts in that area, to render a binding decision on their legal dispute. This is a private procedure. Unlike litigation, arbitration does not have compulsory jurisdiction. Parties must agree to submit the dispute to arbitration. Parties have the freedom to choose the seat of arbitration. Hong Kong remains to be a popular choice for arbitration. According to the 2021 Queen Mary University of London and White & Case International Arbitration Survey (Survey), Hong Kong International Arbitration Centre is the third most preferred arbitration seat and arbitral institution in the world. Good Offices With the consent of the disputing parties, a third party will attempt to persuade the parties to enter into negotiations without necessarily proposing any solutions. Many international organisations offer this type of service to many companies, including large, small and medium enterprises, such as the World Intellectual Property Organization “WIPO”.  Negotiation Involves a discussion between interested

Arbitration is a quasi-judicial process. It differs from traditional forms of dispute resolution in courts. This article will provide you a step-by-step guide into the arbitration process. Agreement to arbitrate An arbitration agreement is usually incorporated as part of the contract as an arbitration clause. If there is no arbitration clause, parties may also conclude a separate arbitration agreement to deal with dispute arising out of other contracts. Dispute - Initiate arbitration Arbitration is principally based on consent, while litigation is not. Courts will always remain as one of the primary remedies for parties to resolve their disputes. Dispute can arise if both parties have agreed to go to arbitration, but one changes their mind and would like to litigate on the issue instead. Example Party A and B has agreed to go to arbitration. Party B latter refused to go to arbitration and applies for court proceedings in Hong Kong instead. What should Party A do? Party A can apply to the court to stay the proceedings and insist on arbitration. According to the Arbitration Ordinance, the courts of Hong Kong will only refuse to stay the proceedings if: (a) if the defendant has submitted its first statement on the dispute to the court, (b) if the court finds the arbitration to be invalid, for reasons such as it is null and void, or it is inoperative or incapable of being performed. Appointment of arbitrators Parties will typically appoint a panel of arbitrators to sit in a case. Normally, parties will appoint an odd number of arbitrators so that a panel can render a definite decision. Arbitrators may be lawyers, academics, retired judges, or experts in a particular field. In the case of International Arbitration, parties also prefer to appoint arbitrators that does not share the same nationality of any of the parties. Pre-hearing; hearing In arbitration, sometimes parties would oppose to the jurisdiction of the panel. This arises as

Although arbitration does have some advantages over traditional routes of pursuing a remedy, it is far from perfect and it has many inherent flaws. The Double-Hatting Problem Double-hatting is when an individual takes on the role of an arbitrator and a legal representation simultaneously in different cases. This is a serious problem for International Arbitration. As a result, the development of this area of law lacks genuine diversity. Delays of the arbitration proceedings are also attributed to the Double-Hatting problem. It can be difficult to appoint experienced arbitrators as their schedules are extremely busy. Legitimacy Crisis As the appointed arbitrators often come from a neutral jurisdiction that is different from the law that the parties have chosen, they may not be familiar in the application and interpretation of the laws that the parties have chosen. The rendered award might be prone to errors. Besides that, parties can agree to a confidential arbitral proceeding, but there is a lack of transparency in its proceedings. Moreover, arbitration has been criticised for being a “winners” system. The system is designed to select a “winner” and an arbitrator’s job is not really to come up with a solution that resolves the dispute. Mediation, on the other hand, might be more suitable for businesses with more embedded legal problems in a transaction. The lack of consistency and predictability of decision The principal feature of arbitration is the finality of awards. The lack of an appellate system makes the arbitration process unpredictable. Furthermore, if the arbitrator has made some manifest errors in rendering the award, the error cannot be reviewed. Also, the doctrine of precedence applies in litigation but not in arbitration. For some cases where the stakes are high, litigation is a more viable option as there is more predictability in the system.  Key Takeaways The Double-Hatting Problem - illustrates that there is a real

In Arbitration or Mediation proceedings, it is not in the interest of the parties to have any legal representations due to its high costs. This article analyses the advantages of having legal representations in these proceedings. Strictly speaking, it is optional to have legal representation in arbitration or mediation proceedings. The procedures for arbitration can be highly complicated and it will be very difficult to draft a claim without any experience in this area. Procedural improprieties can be fatal to some claims. Hence, even if there are high costs in hiring a legal representation, these can save you time and money in researching the proceedings and make sure that your claim does not get defeated by trivial mistakes. Moreover, arbitration is a quasi-judicial proceeding. Even though it may not be as formal as a court, arbitrators are still applying the rule of law. It is advisable that you get legal representation to protect your company’s interest as the area of law in question may be highly complex. Mediation, on the other hand, is not a legal process. It is entirely optional to get legal representation or not. There are various pilot schemes initiated by the Joint Mediation Helpline office to promote the use of mediation amongst SMEs. Key Takeaways: In arbitration or mediation proceedings, it is optional to have legal representation. However, it is always advisable that you do get one to safeguard your legal claims.

In Hong Kong courts, parties to legal proceedings are entitled to represent themselves. While they have the right to legal representation (as guaranteed by the Basic Law), they can also choose not to be represented by a lawyer. Those who choose to represent themselves are referred to as Litigants in Person (LIPs). Lawyer-representation VS self-representation Some people may choose to represent themselves in court because they think that it is better to talk to the judge or jury directly, or they cannot afford the legal fees. While you can choose to represent yourself or to be represented by a lawyer in legal proceedings, there are pros and cons with each option:  Type of RepresentationProsConsLawyer-representationAs lawyers have the relevant legal knowledge and experience, they are more well-equipped and experienced in structuring arguments with enough relevant legal authorities and evidence. They would also know how to defend possible arguments raised by the opposite party.It is often very costly to hire lawyers without getting legal aid because they usually charge by the hour and a case can go on for years if not months. There may be different consequences to making certain moves in a case, and a LIP may overlook one option and suffer the consequences. A lawyer can assist in prioritising the consequences and advising on the option with less severe adverse effects. As lawyers have more than one case to deal with at a time, they may not be able to spare as much time and focus on handling one case as a LIP would. Self-representationRepresenting yourself in court saves legal costs as lawyers are usually expensive to hire if you cannot obtain legal aid.It is difficult for LIPs to win arguments by using “common sense” because there must be sufficient evidence and legal authorities to support the arguments.With technological advances, it has become easier and more common for people to represent themselves in court because they have more access to legal

Cross-border contracts are contracts typically entered into by two parties from different countries or jurisdictions. Generally, to have the right to sue for a breach of contract, one must be a party to the contract. Upon one party’s breach of contract, the other party may choose to take different measures, such as to continue to act on the contract but sue the breaching party for compensation. Suing another party in Hong Kong for breaching a cross-border contract If you wish to sue someone in Hong Kong for breaching one or more terms of a cross-border contract, the first and most important factor that you need to consider is whether there is an exclusive jurisdiction clause in the contract. An exclusive jurisdiction clause is included in a contract if the parties wish all contractual disputes to be determined or adjudicated by the courts of a particular country or jurisdiction. The main purpose of including this clause is to ensure certainty and consistency. An exclusive jurisdiction clause may look like this: “Each of the parties to this Agreement irrevocably agrees that the courts of Hong Kong shall have exclusive jurisdiction to hear and decide any suit, action or proceedings, and/or to settle any disputes, which may arise out of or in connection with this Agreement or its formation or validity and, for these purposes, each party irrevocably submits to the jurisdiction of the courts of Hong Kong.” If the jurisdiction clause is exclusive, this means that the parties can only litigate in the courts specified. If the clause is non-exclusive, it means the parties can also sue in other jurisdictions relevant to the contract. What if the contract does not contain a jurisdiction clause? However, if the cross-border contract does not contain a jurisdiction clause, the rules of private international law would determine which court(s) can settle any dispute arising from the contract. The starting point is that the prospective defendant would be

Litigation is a legal process by which the parties’ disputes are adjudicated by a judicial officer or a judge sitting in a tribunal or a court. When it comes to using litigation as a method to resolve a business dispute, a party usually institutes civil proceedings against another party, who may be a business or an individual. The courts and tribunals in Hong Kong adopt a common law adversarial approach in adjudicating cases. Common areas of dispute Some areas of dispute are more common than others, so it is important for business owners to be aware of these areas to prevent them at the outset. Some of these areas include: Employment disputesContractual disputesBankruptcy Initiating litigation When a person is involved in a business dispute, they may wish to commence litigation rather than to participate in mediation or arbitration for various reasons, such as: Failure in reaching an agreement in mediation or arbitrationMore predictable litigation outcome based on the decisions of similar precedent-setting casesFuller participation in the litigation process from their representative lawyers Which court or tribunal should I go to? The venue at which you can initiate litigation varies depending on the type of dispute that you are involved in: Employment disputes: Employment disputes may arise from payment of wages, termination of employment, Mandatory Provident Fund, leave, end of year payments and other employment conditions. If you are involved in a dispute in relation to employment contracts and you wish to initiate legal action against another party, your case will be heard by the Labour Tribunal. For claims relating to work-related injuries, they will be brought before the District Court. An employment claim may be brought under the Employment Ordinance (Cap. 57), the Factories and Industrial Undertakings Ordinance (Cap. 59), the Employees’ Compensation Ordinance (Cap. 282), the Occupational Safety and Health Ordinance (Cap. 509),

It is inevitable that businesses have disagreements with other businesses and individuals. When you are involved in a business dispute, it is best to resolve it in a timely and cost-effective way. There are at least three ways to resolve a business dispute: Mediation What is it?: Mediation is a voluntary process in which the mediator helps the disputed parties to reach a settlement. The mediator is an impartial and trained third person. ProsConsParties can avoid confrontation and conflicts with each other.If one party is withholding information, it may cause difficulties in conducting the mediation process.Parties can freely reach agreements and make their own decisions, so there is greater flexibility.If the mediator is unskilled, it may contribute to an unproductive resolution.Parties can save money and time because the mediation process can be completed within a day.Either party can withdraw from the mediation proceeding at any time, which may also result in a waste of money, effort and time.The terms of the settlement can be kept confidentially.The mediation cost may be wasted if the dispute cannot be resolved by mediation.Mediation can help the parties in maintaining and improving their relationships.During the mediation process, information may be given away from one party to the other party, which may benefit the other party. Arbitration What is it?: Arbitration is a process in which, upon the parties’ agreement, a dispute is submitted to the arbitrator(s) to make a binding decision regarding the dispute. ProsConsThere is flexibility within the arbitration process because the parties can choose the arbitrator(s).The arbitration decision requires the parties to act in good faith and the arbitrator’s power is not as strong and wide as the court’s power.The parties can ensure that the arbitration is neutral by not only choosing a neutral nationality of the arbitrator(s) but also selecting other important elements neutrally, such as the

Business disputes are inevitable parts of running a business. They relate to any kind of disagreement over the terms of an agreement that has been signed between two businesses or between an individual and a business. There are different types of business disputes, which means that various types of actions can be taken when you are in a dispute. While these disputes can be financially draining and irritating, there are ways to resolve them. Common areas of dispute Some areas of dispute are more common than others, so it is important for business owners to be aware of these areas to prevent them at the outset. Some of these areas include: Employment disputesContractual disputesBankruptcy and winding-up Ways to minimise conflict and dispute Before taking any legal action, there are at least three steps that businesses can take to limit the amount of business disputes that they may encounter: Set up policies and procedures: They can help govern day-to-day transactions and interactions with other businesses and individuals, so the possibility of being involved in disputes can be reduced.Put everything in writing: Certain disputes arise due to a lack of documented business arrangements, especially when arrangements have been agreed orally. Putting everything in writing helps minimise disagreements on what the parties have originally agreed to. In addition to signed contracts, written records can also include email or instant messages.Adopt and develop collaborative practice: Using a collaborative approach and encouraging settlement and negotiation (e.g., mediation and arbitration) rather than litigation not only helps to avoid the expense of courtroom litigation but also improves business relationships between the parties. Legal actions If, at the end, the disputes have not been resolved, there are also a variety of legal actions that can be taken: Employment disputes: Employment disputes may arise from payment of wages, termination of

Business disputes are inevitable parts of running a business. They relate to any kind of disagreement over the terms of an agreement that has been signed between two businesses or between an individual and a business. There are different types of business disputes, which means that various types of actions can be taken when you are in a dispute. While these disputes can be financially draining and irritating, there are ways to resolve them. Common areas of dispute Some areas of dispute are more common than others, so it is important for business owners to be aware of these areas to prevent them at the outset. Some of these areas include: Employment disputesContractual disputesBankruptcy and winding-up Ways to minimise conflict and dispute Before taking any legal action, there are at least three steps that businesses can take to limit the amount of business disputes that they may encounter: Set up policies and procedures: They can help govern day-to-day transactions and interactions with other businesses and individuals, so the possibility of being involved in disputes can be reduced.Put everything in writing: Certain disputes arise due to a lack of documented business arrangements, especially when arrangements have been agreed orally. Putting everything in writing helps minimise disagreements on what the parties have originally agreed to. In addition to signed contracts, written records can also include email or instant messages.Adopt and develop collaborative practice: Using a collaborative approach and encouraging settlement and negotiation (e.g., mediation and arbitration) rather than litigation not only helps to avoid the expense of courtroom litigation but also improves business relationships between the parties. Legal actions If, at the end, the disputes have not been resolved, there are also a variety of legal actions that can be taken: Employment disputes: Employment disputes may arise from payment of wages, termination of