I provide my employees with accommodation – How do I handle this situation when terminating?

Section 39 of the BCEA deals with accommodation that is provided by Employer upon termination of Contract of Employment.
Some Employers may provide Employees with accommodation that forms part of the Cost to Company and/or falls on Company premises.
If Employers decides to provide accommodation to Employees, they must keep the following in mind if the Contract of Employment is terminated.
If the Contract of Employment comes to an end prematurely, e.g., summary dismissal, the Employer must still permit the Employee at least one month accommodation. However, this is only applicable if the Employee has a one month and/or less notice period.

If the Contract of Employment states that both parties must provide each other with more than a months’ notice (e.g. two months’ notice) at termination of contract, the Employer will be obliged to permit the Employee to reside in the accommodation for such period as agreed upon in their Contract of Employment.
Furthermore, if an Employee elects to remain in the accommodation after his/her contract of Employment is terminated the Employer and Employee can determine an agreed upon amount for the accommodation. This agreed upon amount can then be deducted from the monies due and owing to the Employee over an agreed upon period as per Section 38 of the BCEA.
This section of the BCEA is influenced by various other sections of the BCEA, thus itis always advised to consult with Labour Lawyer/Labour Consultant before any steps are taken in this regard.
To arrange a consultation, for more information, with a member of our qualified team, contact Erin Steyn on 021 919 6418 or email erin@joblaw.co.za

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