Frustration of contract: Employee not entitled to redundancy payment as contract had been frustrated
This report relates to 1 case(s)
Collins v Secretary of State for Trade and Industry  All ER (D) 286 (Jan) EAT (0 other reports)
An employee who had seriously injured his hand and had not worked for some years was not entitled to a redundancy payment when his employer went into receivership as his contract had been frustrated by his ill health, holds the EAT in Collins v Secretary of State for Trade and Industry 31.01.01 EAT 1460/99. Although the parties considered that the contract was continuing, if a contract is frustrated by operation of law it must be declared a nullity. Balancing all the relevant factors and looking at the picture as a whole, there was no prospect of the employee going back to work and the employer could not be expected to wait any longer.