Ending employment relationships is never easy, but some situations arise where neither the employer nor the employee is truly at fault for the end of the employment relationship. In British Columbia, “frustration of contract” is a legal doctrine that can bring an employment relationship to an end when unforeseen events make continued employment impossible or fundamentally different from what was originally envisaged by the parties. Understanding what frustration means, and often more importantly what it doesn’t, can help both employers and employees navigate this complex area of employment law.
What Is Frustration of Contract?
Frustration of contract occurs when an unexpected event beyond the control of either party renders the performance of the employment contract impossible or radically different from what the parties originally agreed to. Unlike a typical dismissal, frustration is not about misconduct or poor performance. It is about circumstances that no one could have reasonably anticipated or … Continue reading