Termination Letter (Frustration Due to Medical Disability)

A letter to an employee that terminates employment on the basis of frustration of contract due to the employee's medical disability. Specifically, this letter is intended for use where the employee is unable to work due to a disability, and it is not reasonably foreseeable that the employee will be able to return to work. At common law, an employer does not owe notice of termination or damages to the employee where the contract is frustrated, but it may owe the employee termination entitlements under minimum standards legislation or under the employee's contract of employment. This letter provides optional paragraphs for the employer to select the appropriate termination entitlements.