To what extent is arbitration acceptable in individual labor disputes? A critique from a Jordanian law perspective

In several recent judgments, the Jordanian Court of Cassation has found that using arbitration to resolve individual labor disputes is null. The aforementioned approach which constituted a departure from the well-established former approach that the same court has followed has been confirmed by the new amendments that the Jordanian Arbitration Act has seen in 2018. In view of this, this study aims to highlight and critically analyze the above-mentioned court’s decisions and the new amendments pertaining to arbitration clauses from a Jordanian Labor Law perspective and the distinct characteristics rooted in it to find out the extent to which applying arbitration in such a context is acceptable or not.

To examine how effective are the approaches followed by the Jordanian courts and the legislator in ruling the unacceptability of arbitration clauses in individual labor contracts and to observe to what extent it has been successful in this relation, this work makes use of the secondary data available in this regard as the main method to complete such an examination and this includes the relevant different legislations, court’s decisions and jurisprudence. By critically analyzing and comparing the various data contained in these secondary data sources, this work will identify the problems associated with such approaches and accordingly bring up different recommendations and conclusions.

While the current author do largely agree with the conclusions that have been reached recently by the aforementioned courts, it is submitted that these courts and the legislator have not dealt with such a matter in an adequate and comprehensive manner as they should have spilled more ink on this area of law. Furthermore, this work argues that while the principles that necessitate arbitration shall be respected, the distinct characteristics of the labor law warrant a more careful approach than actually followed by the competent authorities.

Taking into consideration the recent different approaches followed by the Jordanian courts and legislator in ruling the unacceptability of arbitration clauses in individual labor contracts, it would not be a surprise to say that there is no comprehensive and updated scholarly work which has either examined such different approaches or addressed its implications. Accordingly, this work derives its originality and value from being the first and most updated work that examines and addresses such a thorny matter.