If you put it correctly, it often depends on the wording used in the legal agreement. Our advice is to contact us from the outset, in order to avoid unwanted occupants after the end of an employee`s employment. Other issues to consider in your employee-housing contracts are whether tenant insurance should be required and whether the farm or ranch liability insurance covers losses related to a rented or licensed property. An employee`s housing contract may stipulate that your employee must have all services on their behalf; this frees you from liability if pension benefits are not paid. Conversely, your agreement may stipulate that you will pay utilities. This approach makes sense if the staff accommodation is not in a totally different structure than your main residence. If you keep the services on your behalf, you can add a reasonable fee to your employee`s monthly rent — if you ask for rent. It`s up to you to decide to calculate the monthly rent. Some employers do, others do not. If you decide to calculate the rent, you can include a clause stating that you intend to collect rent on paycheck deductions. A first decision that needs to be made when housing employees is whether you want your employees to occupy your unit as a tenant or under license. A license means that the employee is there under the owner`s permission and that the apartment is directly related to his or her employment. It is easier to dislodge an employee when the employee is in the apartment under a license.
However, there is a much greater risk that housing will be treated as part of a worker`s wages, which could increase overtime pay. If the employee is treated as a tenant, it is easier to separate the accommodation from an employee`s salary. The downside of the lease is that it is not so easy to evict the resident at the end of the employment. State law sets the legal minimum amount of termination to be granted before the eviction of a residential tenant. The minimum is usually 30 or 60 days, depending on the type of lease. · The worker takes the estate only as a privilege, in remuneration or otherwise. If, as an employer, you wish to offer a job to a worker who requires him to occupy your property, you must ensure that the agreement is a service occupancy contract and not a service lease. An employee housing contract should show who can live in the house and who cannot live.
It is recommended that only the employee, spouse and minor children be able to reside in the dwelling. Any other person or person wishing to occupy the house must be approved in writing by the owner. A written housing agreement helps homeowners clearly communicate their expectations for housing occupancy and maintain control of residential property. Employee-housing contracts create a landlord-tenant relationship between the employer and the worker. If you are considering making housing available to staff, you would be well advised to have a housing contract for employees; without one, you won`t be able to remember your expectations. Your employees must have a copy of the agreement, as they must be aware of the terms of the agreement and what you can expect from you with regard to your responsibilities. Another problem is the payment of rent on behalf of an employee. Such a cash payment is likely to be interpreted as a salary that could increase taxes on wages and overtime wages.