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Blogs - Arbitration Case Digest

Limited arbitrability of domestic employment disputes cannot be circumvented by submitting dispute to international arbitration

24.05.2018 – Case Number: 4A_7/2018 (18 April 2018)

In a decision dated 18 April 2018, which was published on 4 May 2018 and is marked for inclusion in the official court reporter, the Swiss Supreme Court rejected a request by football club, FC Black Stars Basel to set aside a decision rendered by the civil court of Basel City awarding the former coach of the football club damages and compensation for wrongful dismissal.

The Supreme Court confirmed a previous landmark decision and held that the validity of arbitration clauses in domestic employment contracts is limited. The dispute in question related to mandatory claims under employment law, which cannot be submitted to arbitration. The court clarified that the limited arbitrability of disputes under domestic employment contracts cannot be circumvented by submitting such disputes to international arbitration, where there are no restrictions of the arbitrability of employment matters. (Decision 4A_7/2018.)