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ARTICLE · 31 JANUARY 2011

Some Hope For Employers Dealing With Employees On Long-Term Disability Leave

Stikeman Elliott LLP
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The Ontario courts have released another interesting decision regarding the contractual concept of frustration as it applies to the termination of employees receiving long term disability benefits (see our October 27, 2010 post "Further "frustration" for employers dealing with employees on long term disability").

CanadaEmployment and HR
The Labour And Employment Group
The Labour And Employment Group
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The Ontario courts have released another interesting decision regarding the contractual concept of frustration as it applies to the termination of employees receiving long term disability benefits (see our October 27, 2010 post "Further "frustration" for employers dealing with employees on long term disability"). In Duong v. Linamar Corp., released on June 2, 2010, Justice Newbould dismissed the wrongful dismissal claim of Mr. Hoa Duong, a former employee of Linamar Corp. who was dismissed following nearly three years on long-term disability leave.

The Court found that the parties did not agree that the contractual relationship would continue indefinitely in spite of the employee being unable to work. In line with the concept of frustration, Justice Newbould concluded that if the company continued to employ Mr. Duong, it would be required to something "radically different" from that which was undertaken in the contract of employment.

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