My partner has been off sick for 7 years with a condition known as Obsessive Compulsive Disorder. The company that she works for have a PHI scheme, of which she is a member, and is part of her contract of employment. The scheme will pay out until she either reaches the age of 60 or is well enough to return to work. Latest assessments from her treatment show that she will be unable to return for the forseable future. I understand that as the PHI is part of her contract she cannot be dismissed, however, the terms of the contract with the PHI provider mean that she must still be employed by her employer in order for the payment to be continued. I have two questions please.
1. Does the employer still have to pay for holiday entitlement (None has been received since going sick)
2. Can the employer end the contract due to frustration.
I realise this has a personal note to it, but it may help employers to consider the implications of offering PHI as part of their terms of employment.

Gary Andrews