Frustration of Employment Contract
In basic terms, frustration of an employment contract occurs when it is practically impossible for it to continue.
This can occur where an employer’s office or plant is destroyed (fire, natural disaster, etc.). Frustration of contact can also occur when an employee passes away. The most common example that we encounter at Lypkie Henderson is frustration due to illness or disability of the employee.
If you have been off work for several years due to illness or disability then you are at risk of having your contract deemed frustrated by your employer.
If your employer is correct, and your contract is truly frustrated, then the employer does not have to pay your any severance pay or compensation.