Arbitration Can Be Initiated Over Termination Of Employee Contract Containing Both Dispute Resolution & Termination Clause : Calcutta High Court

The Calcutta High Court has ruled that arbitration can be initiated for employee contract termination containing both dispute resolution and termination clauses, if not a case of termination simpliciter. This significant decision clarifies the arbitrability of employment disputes. If the termination involves more than a straightforward contractual end (e.g., allegations of misconduct, breach of terms beyond mere cessation), and an arbitration clause exists, then arbitration is an appropriate forum. This ruling broadens the scope of disputes amenable to arbitration in employment contracts, promoting alternative dispute resolution for complex termination issues.