But first things first: An arbitration agreement is a contract in which you give up your right to bring certain claims to court. By signing an arbitration agreement, employees give up their rights to have a jury hear and decide their case.What is binding arbitration? Binding arbitration involves the submission of a dispute to a neutral party who hears the case and makes a decision. Many employers ask employees to sign arbitration agreements, in which they give up their right to sue in court over jobrelated issues. Mandatory binding arbitration is a private proceeding used to settle disagreements between two parties. Contractual arbitration is a means of bypassing the judicial system and is voluntary in the sense that the parties have entered into an agreement to resolve.