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Arbitration in the Gig Economy: Resolving Disputes in the non-traditional world Arrangements

Arbitration in the Gig Economy: Resolving Disputes in the non-traditional world Arrangements

Arbitration is one of the most prevalent and the most accepted dispute-resolving mechanisms in the gig economy. This is due to the unique challenges posed by the gig economy, which is characterized by non-traditional relationships and employment. The gig economy means the sharing economy and the on-demand economy, which is in alignment with traditional employment and arrangements wherein temporary assignments are performed for the payments for the gig in exchange. The companies in the gig economy perform as the digital platform for bridging the gap between the customers and the workers for taking their services, they are also treated as the employees and non-independent contractors of the Gig economy. In the past few decades the increase the gig economy has increased by 27% in comparison to traditional employees. Exploring the role of arbitration in this context illuminates its capacity to navigate the complexities of non-traditional employment relationships. To reduce the risks in the gig economy one of the most important and valuable tools that can be used is the binding arbitration agreements with the class action waiver.

Individual Worker Arbitration in the Gig Economy

Under the gig economy, Individual Worker Arbitration is one of the important parts of the dispute resolution mechanism. The companies in the gig economy mostly motivate their workers to choose arbitration as a dispute-resolving mechanism and this is done because of the inclusion of Individual Arbitration Clauses in the contracts of the gig economy in the companies. The most common effect of the Individual arbitration contract in the gig economy is very substantial, they make it clear that most gig economy workers can resolve their disputes related to employment under a certain or any firm. This also confirms and leads to the nonprecedential and only one worker's applicable decisions at one time. Another important effect of Individual Worker Arbitration is that it will reduce the cost of misclassifying workers and will deduct the deterrent effect of the litigation can also serve. It is further very crucial and difficult for the individual worker who can afford the legal cost for the arbitration proceedings as this makes the workers from the gig economy very vulnerable as well as very difficult to make a settlement in the legal claims made. One common solution to cure is a challenge by making a class action lawsuit.

Re-establishing Work Law under Arbitration in the Gig Economy

One of the most important aspects of the gig economy is the re-establishing of work law under arbitration and there are various issues involved which include a systematic review of the individual arbitration clauses, litigants' and courts' responses to ICA Regulating work in the gig economy, and limiting effects of the IACs. Under the ambit of IAC in the gig economy workers, various agreements are important to make an understanding along with the advantages and disadvantages, it can further help in the comprehension of the various effects of the economy. Another issue that has to be addressed in this regard is the litigant and courts' response in the ICAs and it is very crucial to examine the gig economy, it can also curb the challenge of regulating the work in the gig economy which will further include enforcement of the existing laws and make the clarification on the meaning and definition of the employment and its related terms when it comes to arbitration and dispute resolution mechanism.

  • The article emphasizes arbitration as a key and widely accepted mechanism for dispute resolution in the gig economy, employing agreements with class action waivers to mitigate risks.
  • The article explores the significant role of Individual Worker Arbitration, focusing on its effects in dispute resolution, cost reduction, and the vulnerability of gig workers.
  • It addresses systematic reviews of individual arbitration clauses, responses of litigants and courts, and the importance of enforcing existing laws.

BY : Vaishnavi Rastogi

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