Employment contracts, in contrast to commercial contracts, are presumed not to be the product of an agreement between parties
of equal bargain power.
It continues a recent trend from the Court of Appeal in confirming that employment agreements can not be approached in the same manner as commercial agreements (given that employees typically
lack equal bargaining power), and as such, require protection.
It is notable that the Amselem case involved a contract of adhesion, whereas the contract in Bruker was found to be freely negotiated between parties
with equal bargaining power.
Using premarital mediation insures that both parties have input into the ultimate agreement reached, and they
maintain equal bargaining power, with a balanced discussion.
The Court of Appeal in the Smilecorp decision did not discuss the significance of Pesin's relationship with Smilecorp, or comment on the motions» judge's finding
of equal bargaining power.
On reviewing the nature of the relationship, the motions judge held that Pesin and Smilecorp had
equal bargaining power, and observed that: «Dr. Pesin was not plankton in the jaws of a whale.»
Mediation assumes that the parties have
equal bargaining power.
Mediation is most effective when there is
equal bargaining power and where there is an open and honest exchange of information.
Mrs Justice Gloster, like Field J, focused on the commercial context and the fact that the parties were of
equal bargaining power.