Employee Equipment is a tangible property that is given to employed workers by their employers for use in operations and procedures. It entails creation of legal relationships between an employee and employer so that the employee borrows equipment for a certain period of time and takes responsibility for operating borrowed tools and devices according to requirements defined by the employer.
The act of giving workers equipment for use is managed under a legal document called the employee equipment loan agreement. This document stipulates that an employee receives devices, machines, tools and/or vehicles for use within a certain period of time for instructional and/or administrative purposes and for performing necessary work specified by the employer. It is a common practice to use the agreement to manage equipment transfer in commercial organizations.
A typical agreement on employee equipment loan addresses the following issues:
- Reasons for making the loan
- Purpose of the loan
- Loan period
- Loan conditions
- Duties and liabilities of the employee
- Duties and liabilities of the employer
- Penalties and fines.