Service Occupancy Agreement
A Service Occupancy Agreement is for accommodation provided to an employee as part of their job. It grants a personal licence to occupy that is tied to the employment and ends automatically when the employment ends, rather than creating a tenancy.
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Who it is for
Employers who house an employee where living at the property is required for, or helps with, the role.
What is inside
- Guidance notes explaining what a service occupancy is
- Definitions, including the property and the employment contract
- The employment and licence to occupy clauses
- The employee obligations for using the property
- Termination and governing law
- The parties, agreed terms and Schedule 1 lawful occupiers
When to use it
- Occupation of the property is closely linked to the employee role
- The employee occupies for so long as they remain employed
- You need the arrangement to end with the employment and not create a tenancy
Frequently asked questions
Is a service occupancy a tenancy?
No. It is a licence tied to employment, drafted so the occupier does not get exclusive possession or security of tenure. When the job ends, the right to occupy ends with it.
When should I use this instead of a tenancy agreement?
Where living at the property is essential or expressly required for the role, such as a caretaker, site manager or estate worker. For an ordinary let, use a tenancy agreement instead.
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