Housing (Scotland) Act 2001

Payments and benefits to officers and employees etc. S

2 (1) A registered social landlord must not make a payment or grant a benefit to—

(a) an officer or employee of the landlord,

(b) a person who at any time within the preceding twelve months has been a person within paragraph (a),

(c) a close relative of a person within paragraph (a) or (b), or

(d) a business trading for profit of which a person falling within paragraph (a), (b) or (c) is a principal proprietor or in the management of which such a person is directly concerned,

except as permitted by this paragraph.

(2) The following are permitted—

(a) payments made or benefits granted to an officer or employee of the landlord under that person’s contract of employment with the landlord,

(b) the payment of expenses to an officer of the landlord who does not have a contract of employment with the landlord,

(c) any such payment as may be made in accordance with paragraph 1(2) (interest payable in accordance with the rules and certain sums payable by a fully mutual housing association to a person who has ceased to be a member),

(d) the grant or renewal of a tenancy by a co-operative housing association,

(e) where a tenancy of a house has been granted to, or to a close relative of, a person who later became an officer or employee, the grant to that tenant of a new tenancy whether of the same or another house,

(f) payments made or benefits granted with the approval of the Scottish Ministers (which approval may be given only in relation to a class or classes of case).

(3) Where a landlord pays a sum or grants a benefit in contravention of this paragraph, the landlord may recover the sum or value of the benefit; and proceedings for its recovery must be taken if the Scottish Ministers so direct.