An arbitration agreement must be in writing. An arbitration agreement is considered to be in writing[ii] when it: Reciprocity= An arbitration agreement must be decided by mutual agreement and not be favourable to the interest of the employer. International commercial arbitration is considered by the international business community to be a real and often preferable alternative to the settlement of commercial disputes through the courts, especially since arbitral awards are widely applicable worldwide due to the success of the Convention on the Recognition and Enforcement of Foreign Arbitral Awards (New York Convention). Essential elements for the effectiveness of arbitration agreements The parties are generally required to sign an arbitration agreement. The arbitrator`s decision on a matter is binding on both parties as set out in the agreement. .