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Do Employers Have an Obligation to "Frustrate" an Employment Contract?

Employment contracts can be considered "frustrated" when an unforeseeable event occurs that makes it impossible to fulfill the terms of the contract. Where frustration occurs, an employer can end the employment relationship without any liability other than what is required under statute. Under Ontario’s Employment Standards Act, 2000, employees are entitled to statutory termination and severance pay if their employment contract has been frustrated by injury or illness.

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