Frustration of an employment contract occurs when an unforeseen event makes it impossible to continue fulfilling the terms of the contract, and neither the employer nor the employee is at fault. The death of an employer is one such situation where frustration of the contract would occur.
For the purposes of statutory redundancy pay, the frustration of an employee's contract on the death of their individual employer is deemed to be a dismissal by reason of redundancy and this is payable based on age and length of service (assuming more than 2 years). Unfortunately if the contract is frustrated, there is no legal requirement for notice pay since the contract ends automatically rather than being terminated by the employer.
For the purposes of statutory redundancy pay, the frustration of an employee's contract on the death of their individual employer is deemed to be a dismissal by reason of redundancy and this is payable based on age and length of service (assuming more than 2 years). Unfortunately if the contract is frustrated, there is no legal requirement for notice pay since the contract ends automatically rather than being terminated by the employer.


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