The Forced Arbitration Agreement serves as a crucial legal instrument in Malaysian business and employment relationships, requiring parties to resolve disputes through arbitration instead of court litigation. This document is typically implemented at the outset of a business or employment relationship, or when updating existing dispute resolution procedures. It draws authority from the Malaysian Arbitration Act 2005 and related legislation, providing a comprehensive framework for dispute resolution that is generally more efficient and confidential than court proceedings. The agreement includes essential elements such as the scope of arbitrable disputes, arbitrator selection process, cost allocation, and enforcement mechanisms, while ensuring compliance with Malaysian legal requirements and protecting the fundamental rights of all parties involved.
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1. Parties: Identifies and defines all parties to the arbitration agreement
2. Background: Sets out the context and purpose of the arbitration agreement
3. Definitions: Defines key terms used throughout the agreement
4. Agreement to Arbitrate: Core clause establishing the mutual agreement to submit disputes to arbitration
5. Scope of Arbitration: Defines what types of disputes are covered by the arbitration agreement
6. Arbitration Rules and Procedures: Specifies the rules governing the arbitration process
7. Selection of Arbitrator: Process for choosing the arbitrator(s)
8. Costs and Fees: Allocation of arbitration costs and fees between parties
9. Confidentiality: Provisions regarding confidentiality of the arbitration proceedings
10. Governing Law: Specifies Malaysian law as the governing law
11. Enforcement: Provisions regarding the enforcement of arbitral awards
12. Severability: Ensures remainder of agreement remains valid if any provision is found unenforceable
1. Multi-Party Arbitration: Additional provisions for cases involving more than two parties
2. Emergency Arbitrator Provisions: Procedures for urgent interim relief before the arbitration tribunal is formed
3. Industry-Specific Provisions: Special provisions relevant to specific industries (e.g., construction, employment)
4. Class Action Waiver: Explicit prohibition of class or collective arbitration
5. Mediation Prerequisite: Requirement to attempt mediation before proceeding to arbitration
6. Technology and Virtual Hearings: Provisions for conducting arbitration through virtual means
7. Appeals Process: Optional provisions for appealing the arbitration decision
1. Schedule 1: Arbitration Procedures: Detailed step-by-step procedures for conducting the arbitration
2. Schedule 2: Fee Schedule: Detailed breakdown of arbitration fees and costs
3. Schedule 3: Approved Arbitrators: List of pre-approved arbitrators if specified
4. Appendix A: Notice of Arbitration Form: Standard form for initiating arbitration proceedings
5. Appendix B: Response to Notice of Arbitration: Standard form for responding to arbitration notice
6. Appendix C: Code of Ethics: Ethical guidelines for arbitrators and parties
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