Article 1976 C.c.Q.: Termination of a lease accessory to an employment contract

An employer may, where an employee ceases to be in his employ, resiliate a lease that is accessory to the contract of employment by giving the employee prior notice of one month, unless otherwise stipulated in the contract. An employee may resiliate such a lease upon the termination of the contract of employment by giving prior notice of one month to his employer, unless otherwise stipulated in the contract.

Civil Code of Québec, art. 1976 C.c.Q.

What this article means

Article 1976 governs a particular kind of lease: one that is accessory to an employment contract. This is the situation where an employer provides a dwelling to an employee as part of their working relationship (staff housing, a live-in caretaker's unit, a room that comes with a job, and so on). The lease is tied to the employment contract and follows its fate.

When the employment contract ends (whether by resignation, dismissal, or another reason) either party can terminate the lease by giving one month's notice. The employer can terminate the lease when the employee is no longer in their service, and the employee can terminate it when the employment contract has ended, unless the employment contract provides otherwise.

This rule departs from the general rules for residential leases (in particular automatic renewal and the right to remain in the dwelling), because the lease only exists because of the working relationship. Once that relationship ends, it makes sense that the job-linked dwelling can be recovered within a short period.

What it means for you

If you are a tenant

If your dwelling comes with your job, the end of your employment contract can trigger termination of the lease within one month. Check your employment contract: it may set different deadlines or particular conditions.

Start lining up your next home as soon as you see your job coming to an end. One month is short and leaves little time to find a new place. If you resign or are dismissed, the notice can be given right away.

If you are a landlord

For a lease that is accessory to an employment contract, the ordinary residential lease rules do not apply in the same way. You can terminate the lease with one month's notice when the job ends. Clearly document (in the employment contract or a separate lease) that the lease is accessory to the employment.

If you want a longer notice period to let the employee find a new home, add an explicit clause in the employment contract. Without a particular clause, the default is one month.

Related articles

• Article 1972 C.c.Q.: Resiliation: Dwelling Unfit for Habitation
• Article 1974 C.c.Q.: Lease termination: disability, low-rental housing, or admission to a CHSLD
• Article 1974.1 C.c.Q.: Lease termination: sexual violence, spousal violence, or violence towards a child
• Article 1975 C.c.Q.: Termination for a tenant who leaves or abandons an unfit dwelling
• Article 1863 C.c.Q.: Lease termination for non-performance of obligations
• Article 1936 C.c.Q.: The right to remain in the dwelling