Definition of a service letting
When accommodation is offered as part of the job it is classed as a service letting and not a tenancy. The employee never becomes a tenant and the employer is never the landlord. Once the employment has been terminated the ex-employee retains no rights to reside in the accommodation. If the status of the occupancy is not made clear in the contract of employment the test is whether the employee requires the premises he occupies for the better performance of his duties as an employee. If that is the case the employee is then a service occupier and not a tenant.
The contract of employment should clearly state that upon termination of employment the service occupancy is also terminated, and also the period of notice for vacation of the property, which is usually the same as the notice for employment termination. Should the contract not state this then a period of at least four weeks should be given for vacation of the property. No rent may be collected after the termination of the occupancy.
A court order may be obtained to evict the ex-employee as they are acting unlawfully if they still occupy the premises after the service occupancy has been terminated. It will have to be proven that it is a service occupancy and that it has been lawfully terminated. Direct action by, or on behalf of, the employer to remove the ex-employee may constitute a criminal offence and should be avoided.
Compensation for loss of rent due to the unlawful possession of the property by the ex-employee can be claimed based up on what would have reasonably been expected to be collected through that period.
