Private Tenant and Homelessness

Tied accommodation

What you need to know

When a home is tied to the tenant’s employment, it is important to understand the tenants’ rights and what happens when the employment ends. Tied accommodation means the right to live in the property will depend on having the job.

Points to help understand the tenants’ rights:

Check your tenancy agreement

 What type of agreement do you have?

  • If you have a written tenancy agreement, you have stronger rights to stay in the property. This is especially the case if your employer no longer needs to offer the property as part of an employment contract or as an employee benefit.
  • If you have an occupancy agreement, your right to live there is directly tied to your employment, and subject to the terms contained within your employment contract. You may need to leave the accommodation when your employment ends.

Who do you pay rent to?

  • Check who receives your rent payments. If your rent is not linked to your employment or paid to your employer, you might have a stronger claim to remain in the property.
  • Some employers deduct rent from your salary as part of your employment contract. It is worth checking your net monthly pay to see if this deduction is reflected.

Understand your tenancy type

 The type of tenancy you have affects your rights:

  • Tenancy dated after December 2017: The tenancy is a Private Residential Tenancy (PRT). This type of tenancy provides strong protections and means the landlord (your employer) needs a state a valid reason to evict you.
  • Tenancy dated before December 2017: The tenancy may be a Short Assured Tenancy (SAT) or an Assured Tenancy (AT). These have slightly different rules, therefore, check the tenancy paperwork.
  • If your employer is a Council (Local Authority) or Housing Association (Registered Social Landlord): You will have a Scottish Secure Tenancy (SST), which provides a secure tenancy. Grounds for eviction are stated in the tenancy booklet.
  • The terms of a tied accommodation agreement should be detailed in your employment contract. However, formal written agreements have not always been issued for certain jobs or older contracts. Therefore, it is important to check this with your employer.

Farming employees

  •  For farmworkers, tied accommodation is often linked to a Regulated Tenancy or an Occupancy Agreement.
  • Farmers or employers must follow legal eviction processes, even if the property is tied to employment.
  • Employers need to apply to the First Tier Tribunal (FTT) for an eviction order after serving the worker the correct notice and accompanying forms.
  • Farmworkers: Under agricultural tenancy rules, farmworkers sometimes have extra protections and cannot be evicted without a formal legal notice and a Tribunal order, it is therefore important to check this.

Notices to end employment and tenancy

When employment is ending:

Written Notice: The employer must provide clear written notice about the end of the job and tenancy.

  • For farmworkers, this notice should typically be given 6 months in advance.
  • Eviction Process: If the employee has not left the property when notice period ends, the employer cannot force them out. The employer needs to apply to the First Tier Tribunal for Scotland (Housing and Property Chamber) to carry out a legal eviction.
  • An eviction is not guaranteed once the notice expires. Employers must follow the correct processes and legal procedures.

Rights for tenants

  • If the employee/tenant has a written agreement, this can provide additional protections.
  • Always check the employment contract and any housing agreements to understand the individual’s specific situation.

Retiring with tied accommodation

When retiring from employment where tied accommodation was provided, it is important to confirm which type of tenancy agreement is held.

This will help establish the rights the tenant has:

  • A tenancy agreement could provide stronger tenants’ rights to stay, even after retirement, as the property may not be required if the employment position is not replaced.
  • An occupancy agreement can be more restrictive, as it will likely end the tenancy when the employment ends.

It is important to review the employment contract, as it may outline terms regarding the accommodation after retirement.

When retiring, the employer must still provide the employee a written notice to end the employment and the tied accommodation tenancy.

  • Farmworkers: Employers are expected to provide at least 6 months’ notice before starting any eviction actions.
  • Other types of workers: the notice period will depend on the agreement terms and the type of tenancy held.

Planning Ahead when Retiring

  • It is important to discuss your housing situation with the employer when retiring. This will help clarify the situation and requirements of both parties, so that arrangements can start to be made if the employee will become at risk of homelessness.
  • Contact Homelessness Services and local housing services/providers for support and advice on planning to secure alternative accommodation.
  • Prepare all documentation relating to the tenancy and employment. By retaining letters from the employer about retirement and the property, these will help to confirm the tenants’ rights and be vital when seeking advice or accessing housing options.

Accessing support

 If the employee/tenant is faced with eviction or the tied accommodation is ending, ensure that the below actions are taken:

  • Obtain written confirmation from the employer confirming the employment and tenancy are ending. Stating the details of this and dates would be beneficial.
  • Contact our Homeless Services as early as possible. The service will be able to help you understand your options and provide housing options for you.

Advice is available from the below organisations:

Summary

  • The employees’ rights depend on the type of agreement they have and whether the property is still required for future employees.
  • Employers must follow the correct legal steps to evict the employee, even if the employment has ended due to retirement.
  • Plan in advance, and access support early on, to ensure alternative accommodation can be sourced.