The Ontario Court of Appeal has affirmed that an employee’s illness or disability will frustrate an employment contract only in circumstances where the condition is sufficiently enduring to prevent the employee from performing the essential duties of the employment within a reasonable time. Temporary limitations that can reasonably be accommodated will generally not frustrate the contract. In Hill v 1359768 Ontario Inc. (B&B Towing), 2026 ONCA 577 (CanLii), the Ontario Court of Appeal reviewed a trial court decision involving a towing services company that was found to have constructively dismissed the employee by demoting him from the managerial position of road boss to a tow truck driver. The Court of Appeal did not find frustration of the employment contract in this case and affirmed the legal test to determine when this can occur. Legal Test: “The question is whether the employer has proven that the employee’s sickness, injury or … Read More