LTD frustration of contract

My contract says that I can be terminated for frustration of contract after 2 years on LTD. I am well past that and have not been terminated, and am about to initiate a graduated return to work. Can I still be terminated once that process has started? Is there a specific trigger for when I can no longer be terminated for frustration of contract?

It’s a bit odd for an LTD policy to talk about frustration of contract for employment since generally the employment is a separate contract between you and your employer. However generally if you continue to be unable to do the employment, the option for frustration of contract would continue too.

1 Like

This is a case of confusion.

Frustration of employment contract and a long-term disability contract are two very different though somewhat intertwined things.

I would suggest starting by sharing what you think is happening and then we can try and unpack it for you.

I just want to know if I can be terminated for frustration of contract once I start a GRTW. And, if so, at what point is that no longer a risk: once I am off LTD, for example, or once I return to my previous level of employment, or something else.

You are mentioning language in a contract, so it would depend on what exactly the contract says. If it weren’t mentioned in your contract then the general rule would be that you can be terminated for frustration of contract if there’s no reasonable prospect of your returning to work. If you are back at work performing the job, then there is no frustration of contract. A termination of your employment contract would not terminate your LTD claim if you are still disabled.

2 Likes

My contract says I can be terminated for frustration of contract after two years on LTD and I have been on LTD longer than that.

Your employment contract seems super sketchy. It likely wasn’t written by anyone with any HR credentials.

Frustration of contract has legal meaning and it means so much more than being on LTD for 2 years. Your employer would be in a lot of hot water if they tried to enforce that clause, which is probably why they haven’t.

Terminating someone while on grtw program would be huge legal exposure for your employer not to mention a human rights violation.

1 Like