This paper adopts analytical methodology in interrogating the effect of frustration of contract on an employee’s earned salary under Nigeria’s labour jurisprudence analysing the Supreme Court of Nigeria (SCN) decision in National Revenue Mobilisation Allocation and Fiscal Commission & Ors. v. Ajibola Johnson & Ors. The paper examines the rationale, effect and extent of applicability of frustration of contract on a vested right under an employment contract. It also discusses the nature of the employer’s duty to provide work as well as the legal effect of failure to do so especially when an employee reports to work and is willing to and able to work. The paper examines the impact of this decision on employment relationship in Nigeria especially the manner in which courts should reconcile split interests. The paper observed that the SCN in the judgment, has laid down a
rule to guide courts in balancing accrued rights of individuals and directives of government to engender a mutually beneficial outcome.