The plaintiff employee, who had been on a prolonged medical leave of absence since 2012, brought a motion for summary judgment seeking termination and severance pay under the Employment Standards Act, 2000, arguing his employment contract was frustrated due to illness.
The defendant employer argued frustration requires an act of the employer and denied the contract was frustrated.
The court held that frustration occurs as a matter of law when there is no reasonable likelihood of the employee returning to work, which occurred in October 2016 based on medical evidence.
The court granted summary judgment for the statutory entitlements but dismissed the plaintiff's claim for punitive and aggravated damages, finding the employer's conduct was not malicious.