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Manager Employment Agreement with Accommodation and PILON Template

Manager Employment Contract With Accommodation

EMP.MAN.01

This Manager Employment Contract with Accommodation can be used by employers who provide living accommodation as part of a manager’s employment contract. It provides the employee with a licence to reside in the property as a service occupant. The Manager Employment Contract is appropriate for an employee whose level of responsibility falls between the Basic/Statutory Minimum Employment Contract and the Executive Employment Contract.

This Employment Contract covers the requirements of a Standard Form Section One Statement. This contract complies with these requirements and must be provided to the employee or worker by day one of employment.

Previously, a version of this employment contract was available without a PILON clause. This version has now been removed, as with effect from 6 April 2018, all PILONs, regardless of their nature, are to be treated as earnings subject to income tax and Class 1 NICs. Click here for more information.

The Pensions Act 2014 introduced a new state pension for people reaching state pension age on or after 6 April 2016, replacing the previous basic state pension and additional state pension and ending contracting out for defined-benefit schemes. This employment contract has been updated accordingly with the removal of the clause referring to the contracting out certificate.

This contract should be used where it is either essential for the proper performance of the employee’s duties that they should live in the accommodation, such as for a caretaker position, or that accommodation is provided for the better performance of the employee’s duties, such as for a pub manager position.

This contract provides for the employer to pay any rent on the accommodation. Please be aware that if this clause is amended so that the employee pays rent to the employer, the arrangement may be construed as a tenancy, and the employee may acquire security of tenure.

In many cases, the provision of such accommodation will fall under an exemption for tax purposes, meaning that the employee is not liable to pay tax on the cost of the accommodation. However, if it does not fall under an exemption, please be aware that it may be deemed a benefit in kind and could be taxable.

PILON

The contract includes a PILON or “payment in lieu of notice” clause. You should include a payment in lieu of notice clause if you want to have the option of making a payment instead of allowing the employee to continue working their full notice period. The PILON would cover salary until the end of the notice period together with the cash equivalents of any benefits in kind. The benefit of a PILON clause is that you are able to request the employee to leave immediately without breaching the contract of employment, and therefore you retain the integrity of the confidentiality and exclusivity clauses.

This Manager Employment Contract with Accommodation is compliant with the Employment Rights Act 1996, the Employment Act 2002 and the Working Time Regulations 1998.

This Manager Employment Contract contains the following clauses:

1. General

2. Date of Commencement/Continuous Employment

3. Duties

4. Hours of Work

5. Place of Work

6. Work outside the UK

7. Accommodation

8. Remuneration and Benefits

9. Company Car

10. Collective Agreements

11. Holidays

12. Other paid leave

13. Training

14. Sickness Absence

15. Pension

16. Non-Compulsory Retirement

17. Health Insurance and Other Benefits

18. Maternity Leave

19. Paternity Leave

20. Exclusivity of Service

21. Confidential Information

22. Grievance procedures

23. Discipline

24. Termination of Employment

25. Gardening Leave

26. Company Property

27. Data Protection

28. Changes to Terms and Conditions of Employment

29. Severability

30. Governing Law

31. Right to Work in the UK

This contract is in open format. Fields should be completed where indicated.

Clauses with optional and alternative phrases

Options and alternatives appear in blue font. The way in which this document is designed ensures that it will make sense with or without these optional clauses. Tailor this contract by removing all phrases and clauses which are not relevant to your business. Once you have finished, please remember to highlight the whole document and switch the font colour to black.

Once you have purchased access to the Employment document folder click on the “Download Document” button below. You will be asked what you want to do with the file. It is recommended that you save the document to a location of your choice prior to viewing.

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