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A Service Occupancy Agreement is essential when an employer provides accommodation to an employee as a necessary part of their employment duties under English and Welsh law. This document establishes the terms of occupation, clearly differentiating it from a standard tenancy arrangement by linking the right to occupy directly to employment status. It should be used when the employee's presence in the accommodation is required for the better performance of their duties. The agreement covers critical aspects including duration, termination provisions, maintenance responsibilities, and occupancy conditions, while ensuring compliance with relevant employment and property legislation.

1. Parties: Identifies the employer/licensor and employee/licensee with their full details

2. Background: Explains the employment relationship and necessity of accommodation for the role

3. Definitions: Defines key terms used throughout the agreement including Property, Occupation Period, and Employment

4. Grant of Licence: Establishes the terms of occupation and its connection to employment, clearly distinguishing it from a tenancy

5. Duration: Links occupation period to employment duration and conditions

6. Occupier's Obligations: Details responsibilities of the employee including property care, reporting damages, and conduct requirements

7. Employer's Obligations: Outlines responsibilities of the employer regarding property maintenance and statutory compliance

8. Termination: Specifies how and when the agreement ends, including notice periods and automatic termination upon employment end