# Frustration of Contract



## hotredhead (15 Jun 2009)

Hi,I am just wondering if any of you guys have ever come across the term "Frustation of Contract" in employment law.
Taking the example of some one on indefinite "temporary" layoff.
Whereas the term "Temporary" seems to have no cut off point,and can indeed go on forever,taking a case to the Labour Court or EAT has to be done within certain time limits.
In such an instant,can anyone explain to me in more detail how this works,or indeed direct me to such information.
I have tried everything and can find nothing.
I have enlisted the help of a friend in HR,but would be most grateful if any of you guys could help


----------



## Nutso (16 Jun 2009)

Temporary lay off is when an RP9 form is issued to the employee stating the date lay off commences and that the lay off is expected to be temporary.  After a period of 4 weeks, the employee can return part b of the form to the employer requesting redundancy.  The employer then has 1 week to get back to the employee on part c of the form to offer them 13 weeks work within 1 month of that date.  If the employer cannot offer them 13 weeks work within one month of that date, then they have to pay redundancy.  Requesting redundancy in this way means that you are not eligible for any notice period in your contract.  The problem with temporary lay off is that unless you request redundancy on part b of the form, it can go on indefinitely.


----------



## hotredhead (17 Jun 2009)

Thanks for the info Nutser.Although "Temporary Layoff"can and does in a lot of cases go on indefinitely,it is generally condoned if there is genuinely no work available.However just say agency workers or sub-contractors are brought in to do the work,then is it not another ballgame?
Even if no workers are brought in,I have been reliably assured(I'm sure)that a case could be won because of Frustration of Contract.I do not know if this is similar to Breach of Contract.Apparently the Employer has a contract to pay his or her staff and if one is laid off indefinitely this is were this clause comes into play.
As we all know at this stage Temp Layoff can last forever,so hypothetically speaking if one wanted to stay on layoff with the intention  of returning to work but the Employer was being an ass,what avenue can one explore.
Not Unfair or Constructive Dissmissal because one is still employed.Both of which need to be pursued in any case within a defined time limit.
Thankfully I still have my job,but I am trying to sort all this for some one else.
Any other advice or information would be much appreciated.


----------



## hotredhead (17 Jun 2009)

In simple terms, the doctrine of frustration has the effect of discharging any contract (including an employment contract) if, after its formation, events occur making its performance impossible or illegal. In this instance, the employee’s contract to work for you is impossible to perform through no fault of either party.

A leading legal textbook explains that frustration “terminates a contract automatically at the time of the frustrating event. The court may therefore hold that the contract was frustrated even though the parties for some time after the event went on behaving as if the contract still existed.”

In an employment context, this effectively means that the contract is terminated by the operation of law rather than on the basis of the any decision, action or conduct on your part.


----------



## hotredhead (17 Jun 2009)

Sorry I found the above and can't quote it


----------



## Nutso (17 Jun 2009)

That certainly doesn't sound right - if someone is put on temporary lay off then the company is saying that there is no work available to them, but if they are bringing in contract staff to do the work, then clearly the work still exists.  Have you tried contacting NERA about this?  There must be some avenue that it can be investigated under.


----------



## hotredhead (17 Jun 2009)

I will contact Nera in the morning and let you know what they say.Thanks.


----------



## hotredhead (20 Jun 2009)

Have to say Nrea weren't exactly very helpful,saying they don't advise on contracts.Turns out the employer has offered an enhanced redundancy package which has been accepted.The whole thing was becoming too stressful anyway so it seems wise to just take the money while its being offered and leave the whole sorry mess behind.Time for a new chapter!Thanks again for your help Nutso.


----------



## Nutso (21 Jun 2009)

No problem good to hear there was an outcome everyone was happy with.


----------

