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English definition of “arbitration”

arbitration

noun [U]
 
 
/ˌɑːbɪˈtreɪʃən/
LAW a process in which an independent person makes an official decision that ends a legal disagreement without the need for it to be solved in court: Arbitration is often preferred by firms in business disputes. binding/mandatory arbitration The Texas high court said they had to go to arbitration because that's what the signed contract required. The dispute is in arbitration.
HR a process in which an independent official tries to avoid a strike (= situation in which workers stop working as a protest) by having discussions that end a disagreement between the workers and their employer: Pension contribution levels have been fixed by collective bargaining and labor arbitration.
(Definition of arbitration from the Cambridge Business English Dictionary © Cambridge University Press)
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