Arbitrability of employment disputes in India

Arbitration has often been the preferred method of dispute resolution in most commercial contracts in India, including employment contracts. Indian law places a restriction on arbitrating ‘certain disputes’ on account of public policy considerations. Through this article, we evaluate and explore complexities surrounding arbitrability of disputes arising out of employment contracts in India through various judicial precedents, with an aim to decode the scope of employment disputes that can be adjudicated through arbitration.

In recent years, arbitration has often been the preferred method of dispute resolution in most commercial contracts in India, including employment contracts. Factors including privacy, flexibility, cost and time effectiveness of arbitration have been some of the key driving contributors to such growing preference of arbitration over traditional court-driven and other dispute resolution methods. That said, however, Indian law does place a restriction on arbitrating ‘certain disputes’ on account of public policy considerations. Through this article, we evaluate and explore the complexities surrounding arbitrability of disputes arising out of employment contracts in India through various judicial precedents, with an aim to decode the scope of employment disputes that can be adjudicated through arbitration.

Please click here to read the full article by Gerald Manoharan, Sonakshi Das, and Sandhya Swaminathan, published in Lexology