Employee-housing contracts create a landlord-tenant relationship between the employer and the worker. If you are considering making housing available to staff, you would be well advised to have a housing contract for employees; without one, you won`t be able to remember your expectations. Your employees must have a copy of the agreement, as they must be aware of the terms of the agreement and what you can expect from you with regard to your responsibilities. We have seen cases of agreements called “service occupancy agreements,” but the wording of the agreement gives rise to a service lease. This means that, despite the termination of the worker`s employment contract, the worker has the right to remain in the property until the expiry of the employment relationship. By signing this agreement, the employee authorizes the name of the company to deduct from the employee`s salary any amount that the employee must pay to the employer under that agreement. If, as an employer, you wish to offer a job to a worker who requires him to occupy your property, you must ensure that the agreement is a service occupancy contract and not a service lease. Understanding the difference between a service occupancy contract and a service lease is essential and careful consideration should be given to the type of agreement you need to use. When you provide accommodation to an employee, the agreement is usually documented by the parties who enter into either a service occupancy agreement or a service lease. · The lease agreement under which the employee occupies the premises includes provisions that are compatible with a rental contract (for example. B the rent is paid and the employee has exclusive ownership of the property). · The occupier holds a personal licence as long as the employee is employed by the employer and the occupancy contract automatically ends when the employment contract ends.
What are the issues that employers need to consider when workers are offered housing as part of their employment? We explain the difference between a service occupancy contract and a service lease and why this is important. An employee`s housing contract may stipulate that your employee must have all services on their behalf; this frees you from liability if pension benefits are not paid. Conversely, your agreement may stipulate that you will pay utilities. This approach makes sense if the staff accommodation is not in a totally different structure than your main residence.