Legislative changes made security guard’s licence invalid so employer dismissed him
Frustration of an employment contract occurs whenever the law recognizes that, without the fault of either party, a contractual obligation cannot be fulfilled. Physical disability, commercial impossibility, or changes in legislation are frustrating events, which may excuse a non-performance of contractual duties without liability. In considering the latter eventuality, the Ontario Divisional Court in Cowie v. Great Blue Heron Charity Casino resolved that an employment contract could be immediately frustrated if the frustration was induced by supervening changes in legislation that made an employee’s continued employment illegal. Cowie drew a bright line between frustrations caused by illness or disability and illegality, where the former entitles and the latter disentitles employees to severance.
