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England

Service occupiers

A worker who lives in accommodation as a condition of their employment can be asked to leave immediately when their employment ends.

This content applies to England

Who is a service occupier?

A service occupier is a worker who lives in accommodation provided by their employer where it is either:[1]

  • essential they live in the accommodation to do their job

  • a term of their employment contract that they live in the accommodation to do their job

Service occupiers can be asked to leave immediately when their employment ends.

The occupation and employment can start on different days.[2] The employment contract or occupancy agreement sets out the terms and conditions of the service occupancy.

People who are service occupiers might include:

  • live-in carers, nannies or housekeepers

  • hotel or pub employees who live on the premises

  • caretakers or gardeners who live in or near their workplace

Occupation essential for performance of duties

A person is a service occupier if the job cannot be performed unless they live in the accommodation provided by their employer. For example, most live-in carers or nannies.

There does not have to be a specific written term in the employment contract. The requirement is implied into the agreement by the requirements of the job.[3]

Express term in employment contract

A person is a service occupier if it is an express term of their employment contract that they live at the property for the better performance of their duties.

Living in the accommodation does not have to be essential to the worker's duties. It is sufficient that the duties are better performed by someone living on-site.[4] For example, a police officer who has a term in their contract that they must occupy specific accommodation so they are available for their work.

It must be a genuine requirement of the employment.[5] Occupiers with tied accommodation have fewer rights than tenants. An employer might claim occupation is a genuine requirement so the occupier doesn't have the protection of a tenancy. This could be a sham agreement. Find out more about sham tenancy agreements on Shelter Legal.

Eviction when employment ends

A service occupier's right to live in the property usually ends when their employment ends. The employer does not have to serve a notice to quit.[6]

When the employer does not need a court order

The employer does not need a court order to evict if the worker is an excluded occupier. A service occupier might be an excluded occupier if:

  • they live in the accommodation rent free

  • the employer is an individual who lives in the property and shares living accommodation with the employee

A worker is treated as paying rent if they receive a lower wage because they have accommodation as part of their job. This is called paying 'money's worth.'

When the employment ends, the employer can peaceably evict an excluded occupier. For example, by changing the locks while the occupier is out.

Find out more about the eviction of an excluded occupier on Shelter Legal.

When the employer needs a court order

The employer must apply to court for a possession order if the worker is not an excluded occupier. They can then apply for a warrant to allow bailiffs to evict the service occupier.

The occupier will not normally have a defence to proceedings. An employee of a public authority landlord might have a defence it is has not complied with the public sector equality duty.[7]

Find out more about the possession process on Shelter Legal.

Landlord harassment

It is illegal for a landlord or anyone acting on their behalf to harass an occupier or use force to make them leave a property. Harassment could include:

  • illegally changing the locks

  • removing the occupier's belongings

  • cutting off utilities such as gas and electricity

Find out more about landlord harassment on Shelter Legal.

Unfair dismissal

A worker might be able to challenge their dismissal if they think it is unfair. They can do this through an employment tribunal.

This process can take a long time and it is unlikely the worker will be able to stay in the property during their challenge.

Citizens Advice has information about checking if a dismissal is unfair.

Making a homelessness application

A person can make a homelessness application to their local authority if they are evicted and have nowhere else to live.

The Homelessness Code of Guidance states that a former service occupier whose employment has ended if homeless even if they remain as an unauthorised occupier.[8]

Find out more about the homelessness application process on Shelter Legal.

Agricultural workers

An agricultural worker with accommodation tied to their employment who meets relevant conditions has lifetime security of tenure as a protected or assured agricultural occupier. The occupier must:

  1. have worked in agriculture for a qualifying period

  2. occupy a property in qualifying ownership

  3. have a relevant tenancy or licence

Agricultural occupiers have more rights than a service occupier, including rights to stay in their accommodation after their employment ends.

Find out more about agricultural occupiers on Shelter Legal.

Members of the armed forces

Members of the armed forces are usually provided with accommodation at or near the base or port where they are stationed. Armed forces accommodation is tied to the work on a licence agreement. Occupiers can remain in occupation until the court orders possession following written notice to vacate.

Members of the armed forces with spouses or civil partners are usually accommodated in Services Family Accommodation. Single members of the armed forces are usually accommodated in Single Living Accommodation.

Where armed forces accommodation is not available in that area, Substitute Single Service Accommodation or Substitute Service Family Accommodation can be arranged from local private rented sector accommodation.

The Soldiers, Sailors, Airmen and Families Association (SSAFA) runs a housing advice service. Find out more on the SSAFA website.

Find out more about services family accommodation on Shelter Legal.

Workers who do not have to live in the accommodation

Some workers rent accommodation from their employer but they don't need to live in the property to do their job. An occupier can move in and out of a service occupancy as their employment circumstances change.[9] For example, if it is no longer essential to live in the property.

An employee is a service tenant if they:

  • rent accommodation from their employer

  • do not need to live in the accommodation to do their job

  • meet the requirements for a tenancy

Find out more about service tenants on Shelter Legal.

If the employee does not need to live in the accommodation and does not qualify for tenancy rights they will usually have a licence.[10]

Find out more about the rights of licensees on Shelter Legal.

Last updated: 1 August 2023

Footnotes

  • [1]

    Northern Ireland Commissioner of Valuation v Fermanagh Protestant Board of Education [1969] 1 WLR 1708, HL.

  • [2]

    Norris v Checksfield (1991) 23 HLR 425, CA.

  • [3]

    Smith v Seghill Overseers [1875] LR 10 QB 422; Glasgow Corporation v Johnstone [1965] 2 WLR 657, HL.

  • [4]

    Coleman v Ipswich BC [2001] EWCA Civ. 852, CA; Surrey CC v Lamond (1998) 31 HLR 1051, CA.

  • [5]

    Wragg v Surrey CC [2008] EWCA Civ 19; Gray v Holmes [1949] 30 TC 467.

  • [6]

    Norris v Checksfield (1991) 23 HLR 425, CA.

  • [7]

    Barnsley Metropolitan Borough Council v Norton and others [2011] EWCA Civ 834.

  • [8]

    para 6.11 Homelessness Code of Guidance, MHCLG, Feb 2018.

  • [9]

    Elvidge v Coventry CC (1993) 26 HLR 281, CA.

  • [10]

    Torbett v Faulkner [1952] 2 TLR 659 CA.