Bridging Work and Home - A Conveyancing Approach to Employee Tenancies.

An employee may also be a tenant of one of your properties. The relationship can be based on an inclusion in the employment contract or two separate relationships, the employment contract regulating the employment relationship and the lease agreement regulating the lease relationship. In the beginning, both parties can be full of smiles and joy, but sometimes life happens, and the one party is not full of smiles anymore, which results in the termination of the relationship.  

Accommodation inclusive of remuneration 

In the case of an employment contract including accommodation as part of the remuneration package, the employment relationship ends in a termination. It is of utmost importance to comply with the terms and conditions set out in the employment contract. Even though the employment contract fully complies with the required legislation, it’s still crucial to read the employment contract along with the legislation of property needed due to property matters always being complicated and sensitive matters.1 

Once the employment contract has been terminated in accordance with the terms and conditions, the employee is required to leave the premises unless otherwise arranged by the parties. Should the employment contract be terminated prematurely, the employee shall be entitled to one month’s accommodation or according to the period outstanding of the contract.2  

It is possible to amend the remuneration package instead due to a change of circumstances. Therefore, due to accommodation not being part of the remuneration package anymore, an alternative to fill the gap should be borne in mind to justify the gap. To prevent a situation arising due to the employment contract not meeting the required remuneration standards as required by legislation. 3 

Two separate contracts regulating the relationships 

It is preferable to opt for contracts to regulate each relationship, employment contract, and lease agreement. In circumstances where the employment contract is being terminated, it is straightforward due to each relationship being controlled by the particular contract. The lease agreement will continue as is due to the employment contracts being completely separated from one another and vice versa.4 

Eviction of an employee 

When the irretrievable relationship gets to the point where the employee resists vacating the premises, one can opt for eviction. At such a stage, it is of utmost importance to comply with all the required legislation and procedures to ensure statutory compliance and to prevent any consequences on your end. 5 

Starting with the jurisdiction, it is critical to comply with the correct legislation; if it is an urban property, the Prevention of Illegal Eviction (PIE) applies. Should the property be situated in a rural area, then the Extension of Security of Tenure Act should be complied with. 6 

Eviction may be the last resort; significantly, this can affect the employment relationship. Hence, multiple complexities and challenges come with such instances. Therefore, instead, they opt to negotiate on a flexible basis with alternative conditions that are well set down in writing to ensure a continued employment relationship.7  

Exception to the lease agreement 

In the case of the employee being a tenant, ensure that both parties are aware and informed about their rights in relation to the lease agreement, including the terms and conditions. In the case of the employee being in breach of the lease agreement, attempt to make an exception to the particular relationship in issue to ensure a continued employment relationship by dealing with the consequences of the terminated contract in a sensitive way to avoid a lengthy legal procedure and costs that could be avoided by being relatively tolerable than adamant. If the termination results in resistance, it is preferable to opt for a roundtable discussion regarding the termination of the particular contract. If still no positive result is resolved, then legal action will be the last resort.8  

Conclusion 

Ensure that all clauses are up to date in a lease agreement, whether it is a first-time lease agreement or a renewal of the lease agreement. Ensure that all agreed agreements are set down in a formal contract and that both parties have signed, reflecting their mutual agreement. If you need any assistance or advice regarding the content and implications of specific lease agreements or matters relating to conveyancing, contact an attorney at SchoemanLaw.  

Riaan Basson | SchoemanLaw Inc    

Candidate Attorney   

https://schoemanlaw.co.za/our-services/conveyancing-and-property-law/  

https://schoemanlaw.co.za/our-services/contract-drafting/