On April 21, 2014, a California appeals court ruled that an arbitration agreement was unacceptable and that an employer could not impose arbitration if the employer had not translated the entire English-language employment agreement containing an arbitration agreement, confidentiality clause and enforceable provision for its Spanish-speaking employees. As noted above, if an arbitration agreement does not specify the number of arbitrators, the ASA`s default rule is to have a single arbitrator (Article 12 of the ASA). This chapter provides an overview of the evolution of arbitration in Spain since May 2019. It focuses on both commercial arbitrations under Spanish Arbitration Act (SAA) 2 and the arbitration investment contract. In determining whether the agreement was materially unacceptable, the Tribunal examined the degree of reciprocity of the agreement. The court found that the agreement lacked reciprocity on the basis of: 1) the enforceable force clause allowed employers to take legal action, but limited the worker to arbitration; 2) the same enforceable force clause also contained the presumption that a breach of the confidentiality provision of the agreement would result in immediate and unaffordable harm to employers, but did not contain a parallel presumption in favour of workers; 3) the enforceable force clause allows employers to recover legal fees and fees, but has not given workers the same right; and 4) the arbitration clause required employees to discuss disputes with management before disclosing information to third parties, giving employers “free access” to issues they may face in arbitration proceedings. Section I briefly discusses some of the key features of the ASA and the key differences between the ASA and the UNCIT model law. Section II provides an overview of the main developments of the year in Spain, including an analysis of the Spanish judicial decisions on the subject of the past year, an update of investor-state arbitration, in particular the developments of the year in some of the many actions brought against the Kingdom of Spain in recent years, and an analysis of the impact of covid-19 on arbitration in Spain.
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