Employee Housing Agreement Ontario

Employee Housing Agreement Ontario: What You Need to Know

If you`re an employer in Ontario, you may face the challenge of finding suitable and affordable housing for your employees. One solution is to provide employee housing, which can benefit both you and your employees. However, before diving into this option, it`s important to understand the legal requirements for an employee housing agreement in Ontario.

What is an Employee Housing Agreement?

An employee housing agreement is a written contract between an employer and an employee, outlining the terms and conditions of the housing arrangement. The agreement typically sets out the rent amount, the duration of the tenancy, and any rules or regulations regarding the use of the property.

Under the Ontario Employment Standards Act, an employer may provide housing as a benefit to an employee, but the employer must comply with certain legal requirements. Failure to adhere to these requirements can result in fines and legal liability.

What are the Legal Requirements for an Employee Housing Agreement in Ontario?

To ensure compliance with Ontario law, employers must follow these legal requirements when providing employee housing:

1. The accommodation must be necessary: The accommodation must be necessary for the employee to perform their job duties, such as in remote work locations where housing is not readily available. The employer must prove that providing housing is essential to the performance of the employee`s job.

2. The accommodation must be reasonable: The employer must provide housing that is reasonable in size and quality. The accommodation must also comply with all health and safety standards and building codes.

3. The rent must be reasonable: Employers must charge a fair and reasonable rent for the accommodation. The rent charged must not exceed the fair market value for similar rental properties in the area.

4. The accommodation must be voluntary: Employees must have the option to decline the offer of housing. Employees cannot be required to live in employer-provided housing as a condition of employment.

5. The accommodation must not be discriminatory: Employers cannot discriminate against employees on the basis of protected grounds such as race, religion, or gender when providing employee housing.

What Should be Included in an Employee Housing Agreement?

An employee housing agreement should include the following terms:

1. The rent amount and payment schedule

2. The duration of the tenancy

3. Rules and regulations regarding the use of the property

4. The process for terminating the tenancy

5. The responsibilities of the employer and the employee, such as maintenance and repairs

6. The provisions for extending or renewing the tenancy

7. The consequences for breaching the agreement


Employee housing can be a valuable benefit for employers and employees alike. However, it`s important to understand the legal requirements for an employee housing agreement in Ontario to avoid potential legal issues. By complying with these legal requirements and including the necessary terms in the written agreement, employers can provide safe and affordable housing for their employees while also protecting their legal rights.