An employment contract is said to have been frustrated when the law recognises that the contractual obligation has become incapable of being performed because of a radical change in circumstances. For example where events make it physically impossible for the contract to be performed, such as imprisonment or prolonged, indefinite absence due to illness or injury or a change in circumstances (e.g needing to look after a sick relative) meaning they are unable to perform their full normal duties.

A common cause of frustration of contract is medical incapacity (see below). In this situation the employee becomes unable to continue their employment because of ongoing disabilities caused by injury or illness.

BigApple must be seen to take into account prevailing human rights, Health & Safety, Accident Compensation and employment legislation before acting to terminate an employee’s contract for reasons of frustration. Whilst such dismissals can be justified in some circumstances, they require careful handling on a case by case basis.

Where you become aware and employee may be absent from work for a prolonged period of time to the point where you believe their ability to perform the role has been frustrated by the reason for the absence contact HR to discuss your options and the possibility of terminating for reasons of frustration.