This is a licence for an employee to occupy property owned by their employer on the basis that it is necessary for the employee to live in the property for the better performance of their duties. If the employee's occupation of the property is not genuinely required for the better performance of their duties, then the employee will have the benefit of a tenancy agreement (and the additional legal protection that it brings). There also needs to be an express term in the employee's contract of employment allowing the employee to reside in the employer's property - a typical situation where it can be used is when employing a domestic carer for an elderly employer or an au-pair. If an employer has a lease for the property (usually associated with ownership of flats) or is renting the property from a third party, then it should check whether it requires permission from the landlord before granting this licence.
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