In the agricultural sector, on-farm housing remains a common and often essential arrangement. However, providing accommodation to employees without a clear, written housing agreement exposes both the employer and the occupant to unnecessary legal and operational risk. From a SIZA perspective, formal housing agreements are not merely administrative documents but a key document that ensures responsible farm management, protecting the business owner and the employees.
When a business offers housing and undergoes a SIZA audit, the auditor will look at the housing agreement to determine several aspects, such as whether the accommodation is linked to employment, the duration of stay, rental or deductions (if any), maintenance responsibilities, rules regarding utilities, and the circumstances under which occupation may be terminated.
| Occupancy Dates: This is very important as the agreement formally acknowledges the period of occupancy. Auditors will use this to determine whether this is clearly stipulated. |
Mutual Responsibilities: This can sometimes be separate as a housing policy, but the agreement should at minimum make sure to keep both parties to the responsibilities an duties expected of them. This can include the occupant not allowed to damage the property, or the owner ensuring there is water availability for example. The auditor will use this to ensure the occupants is aware of the requirements in the business and that it is being met. |
| Deductions: If its applicable, and a cost is deducted for the accommodation, this will need to be reflected in the agreement. Auditors will verify this through deductions on payslips and interviews with occupants who are also employed by the business. |
Who are the Occupants: Having a clear defined understanding of who is allowed to love in the house, prevents overcrowding, and arguments around visitors staying or moving in without permission. Auditors can use this during audits to better understand the living conditions of a family, or even the head of the house. |
| Notice Period: Often, especially after a season, there can be confusion of someone is to move out of a house or accommodation on how long they have to do so. The auditors will verify whether this notice period is actually used and appropriate for the agreement, such as 30 days for example, and whether this was agreed to. This protects the occupant and the owner ensuring illegal occupation disputes can be avoided. |
Signature: This seems like a common understanding, however the majority of disputes normally arise with either party not having signed or agreed to a particular contract or policy, Having a signed copy, with names and dates, protects all parties involved and ensures misunderstanding can be avoided. |
If the above aspects are not included or clearly defined in the housing agreement, disagreements and uncertainties can easily arise regarding eviction processes, wage deductions, or property damage. This is particularly relevant in South Africa, where farm dwellers may also be protected under legislation such as the Extension of Security of Tenure Act, which regulates eviction and tenure rights on agricultural land. A housing agreement demonstrates that the employer has taken reasonable steps to ensure informed consent and fair treatment. It also provides documentary evidence during audits that housing arrangements are structured, lawful, and aligned with both labour legislation and ethical standards.
For further guidance, please refer to the SIZA guideline on accommodation here: SIZA Accommodation Guideline.
Templates for housing contracts are available to SIZA subscribers on the MySIZA platform under “Resources.” Templates are only a guideline and should be tailored to a specific business.
For additional assistance, please get in touch with Wian van Niekerk (wian@siza.co.za) or Werner van Dyk (werner@siza.co.za) or by telephone at 021 852 8184.
