Arbitration for MSME
This is a specialized kind of arbitration, designed for micro, small and mid-sized companies or for individuals who have disputes with them. It also includes special characteristics in response to the specific needs of MSME.
Benefits of MSME arbitration
- The procedure is shorter than national arbitration.
- Costs are lower than those in national arbitration.
- The dispute is resolved in final fashion by an expert matter arbitrator.
The following are the requirements to access this service:
- One of the parties should be classified as a MSME.
- The amount in dispute must be smaller than 400 monthly legal minimum wages.
- The dispute must be regarding to matters of free disposition and those authorized by law.
How MSME Arbitration works
This program works in both existing as well as future conflicts, in order for them to be resolved by an arbitrator, as opposed to ordinary jurisdiction.
Whenever disputes arise involving an MSME and by request from either party, the CCB's Center of Arbitration and Conciliation summons an initial meeting to bring the parties closer during a free session where, under the advisory from Center of Arbitration and Conciliation attorneys, the parties may voluntarily sign an agreement which enables a third party ( the arbitrator) to provide an impartial and final resolution to their dispute.
The inclusion of an arbitration clause in agreements signed with MSMEs, assures the resolution of any future disputes or conflicts between the parties through third party arbitration.
The arbitration pact must meet the following requirements: i) it must be signed by an MSME; ii) it must expressly state that the proceeding is an MSME arbitration governed by the MSME Arbitration Proceeding Regulations established by the CCB's Center of Arbitration and Conciliation.