In Canada, hundreds of Uber drivers came together for a class action lawsuit against Uber seeking benefits under Ontario employment laws. In India, drivers engaged by an instant delivery service platform went on strike against a new pay structure under which the minimum pay-out per delivery was reduced, leading to a drop in the earnings of the service provider by 50% per day. The terms of service form part of standard form non-negotiable agreements. Companies that include a mandatory arbitration clause with such standard form contracts are increasingly facing lawsuits across jurisdictions. The Canadian Supreme Court held such an arbitration clause invalid, largely on the ground that it was part of a ‘standard form contract’ that was ‘non-negotiable’ and ‘realistically unattainable’. Enforcing such arbitration clauses with users have had mixed success, leading to business uncertainty and raising transaction costs due to litigation across jurisdictions. This article explores implications of decisions across jurisdictions regarding such arbitration clauses in the Indian context. The article then argues for a universal harmonization of rules from a global perspective by formulating a general principle to afford certainty to businesses operating at a global level.
Arbitration: The International Journal of Arbitration, Mediation and Dispute Management