An employment contract is ‘frustrated’ when the law recognises that the contractual obligation has become incapable of being performed because of a radical change in circumstances. Typical examples include where events make it physically impossible for the contract to be performed. This might include; failing ability in an older team member, imprisonment, prolonged, indefinite absence due to illness or injury. It may also include a change in circumstances (e.g. needing to look after a sick relative).

A common cause of frustration of contract is medical incapacity. In this situation, the team member becomes unable to continue their employment because of ongoing disabilities caused by injury or illness (physical or mental).

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

Where you become aware, a team member is or is becoming incapable of performing their full normal duties for any other reason you should contact Organisational Development and Capability to discuss your options. Next steps will typically involve getting some medical assessment where the situation is visible or mental origin. Situations such as imprisonment will depend on the circumstances and duration of absence.