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Frustration of contract: Employee not entitled to redundancy payment as contract had been frustrated

This report relates to 1 case(s)

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    Collins v Secretary of State for Trade and Industry [2001] 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.