Your obligations will depend on the province where the employee works.
- In some provinces (like Ontario), even if a contract is frustrated due to illness or injury, you are still required to provide statutory termination payments (and Severance Pay, if applicable) as outlined in the employment standards legislation.
- In other provinces, frustration of contract may relieve you of the obligation to provide notice/pay in lieu of notice or severance pay.
It is crucial to understand the specific requirements in your province and consult with an employment lawyer to ensure compliance.
