Service Occupancy Agreement
If you are an employer providing living accommodation to an employee on site so that the employee can carry out their duties under the terms of their employment, this is treated as a service occupancy.
This Service Occupancy Agreement can be used where the terms of the employee’s occupancy are to be kept separate from the employment contract (which may be done for administrative reasons) or the existing employment contract does not contain service occupancy provisions.
This template is suitable for use in England only. If your property is in Wales, you will grant an occupation contract. Model written statements for the occupation contracts can be found in the Renting Homes Wales folder.
This Service Occupancy Agreement creates a licence for the employee to occupy the property for as long as they are employed by the employer. This agreement will terminate automatically when the employment contract ends.
This agreement is drafted using plain English so that it can be easily understood.
Service Occupancy Agreement is part of Property. Just £38.50 + VAT provides unlimited downloads from Property for 1 year.
Frequently Asked Questions
I house an employee on site so they can do their job. Is that a tenancy or a licence? +
A service occupancy, which is a licence rather than a tenancy. Where you require an employee to live in the accommodation for the better performance of their duties, they occupy as a licensee tied to the job, not as a tenant with an interest in the property. This agreement documents that occupation and keeps it separate from the employment contract.
What happens to the accommodation when the employment ends? +
The right to occupy ends with the job. A service occupancy licence lasts only as long as the employment, so when the employment contract ends the licence to occupy terminates automatically. That is the point of the arrangement: the accommodation goes with the role, and the employee has no separate right to stay on once they are no longer employed.
Can I use this template if the property is in Wales? +
No. This service occupancy template is for England. In Wales, providing accommodation to an employee is dealt with as an occupation contract under the Renting Homes (Wales) Act 2016, with its own model written statements. If the property is in Wales use the Renting Homes Wales documents rather than this agreement.
