Manager Employment Contract With Accommodation

This Manager Employment Contract with Accommodation is for employers who provide living accommodation as part of a manager’s employment package. It grants the employee a licence to reside in the property as a service occupant.

The Manager Employment Contract is appropriate where the employee’s level of responsibility sits 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 and must be provided to the employee or worker by day one of employment.

When to use accommodation as part of the role

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

Rent, status and tax treatment of accommodation

The contract provides for the employer to pay any rent on the accommodation. If this 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 accommodation will fall within a tax exemption so the employee is not liable to pay tax on the cost of the accommodation. If it does not fall within an exemption, it may be treated as a benefit in kind and could be taxable.

PILON and related updates

The contract includes a PILON (payment in lieu of notice) clause, giving the option to make a payment instead of requiring the employee to work their full notice period. The PILON would cover salary to the end of the notice period together with the cash equivalents of any benefits in kind.

The benefit of a PILON clause is that the employee can be required to leave immediately without breaching the contract, helping to preserve the effectiveness of confidentiality and exclusivity provisions.

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.

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.

What the contract covers

• Core terms including commencement/continuous employment, duties, hours and place of work (including work outside the UK)
• Accommodation provisions and the service occupancy licence arrangements
• Pay and benefits (including company car, health insurance and other benefits), holidays and other paid leave, training, and sickness absence
• Pension, non-compulsory retirement, maternity leave and paternity leave
• Exclusivity of service, confidentiality, grievance and discipline, termination (including gardening leave), and company property
• Data protection, changes to terms and conditions, severability, governing law and right to work in the UK

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

Manager Employment Contract With Accommodation is part of Employment. Just £38.50 + VAT provides unlimited downloads from Employment for 1 year.