Does a downturn in business due to COVID result in a frustration of employment?

Does a downturn in business due to COVID result in a frustration of employment?

Over the course of the pandemic, many employers (particularly those in retail, hospitality and tourism) experienced a significant downturn in business. As a result, some made the difficult decision to either lay-off or dismiss staff. A recent court decision from British Columbia considers whether an employer’s dramatic loss of revenue (which informed the decision to end employment) should properly be considered a “frustration of employment.”

Q&A: Frustration of employment

Q&A: Frustration of employment

Q&A is a recurring series on the Vey Willetts LLP blog. The aim is to provide quick answers to questions we commonly encounter in our day-to-day practice of employment law. In this edition, we focus on “frustration of employment.”