Arbitration clauses in senior management, executive and independent-consultant agreements are increasingly common, covering disputes over termination, non-compete and confidentiality breaches, and deferred compensation or ESOP disputes.
Disputes falling within the definition of an "industrial dispute" involving a "workman" under labour legislation are generally not arbitrable and must go through the statutory industrial dispute machinery instead — a private arbitration clause cannot override that protection. This distinction matters most for mid-sized companies unsure which category a given role falls into.
For the disputes that are arbitrable, confidentiality is usually the main draw: neither an outgoing executive nor the company typically wants compensation figures, performance disputes or the circumstances of a departure aired in open court.