If your business provides equipment such as cell phones, computers or tools that employees use both on-site and off, or if you permit employees to check out business equipment for short-term personal use, you need an equipment use agreement. These agreements are necessary to protect against excessive personal use or financial losses due to misuse or damage beyond normal wear and tear.
An equipment use agreement is similar to other types of business contracts, except that stated terms and conditions typically are not negotiable. Regardless of the period the agreement covers, the first section typically identifies the item, including a brief description and the model or serial number, specifies the date issued and may include the item’s replacement cost. A short-term agreement might also specify the usage term and include a space to record a required security deposit fee.
Terms and Conditions
Terms and conditions can range from a detailed narrative to a simple statement. A long-term agreement often specifies the equipment is primarily for business use and reminds the employee that not only the equipment, but also any information stored in it, belongs to the business. It transfers responsibility for safeguarding the equipment to the employee and defines conditions, such as lack of need or termination, under which the employee must return the equipment. A short-term agreement often includes simple terms and conditions. Statements requiring the employee to take care of and return the equipment in good working condition and repair or replace damaged equipment are common.