Company Vehicle Use Agreement Form Australia: What You Need to Know

As a business owner in Australia, you may provide your employees with company vehicles to help them perform their job duties. However, it is essential to have a company vehicle use agreement form to ensure that your employees understand the expectations, rules, and guidelines for using the company vehicle. This article will discuss the importance of having a company vehicle use agreement form and what should be included in the document.

Why is a Company Vehicle Use Agreement Form Necessary?

A company vehicle use agreement form is necessary for various reasons, including:

1. Legal Protection: A company vehicle use agreement form provides legal protection for your business in case of accidents or damage to the vehicle. The form outlines the responsibilities of the driver and the consequences of violating the agreement.

2. Cost Savings: The agreement ensures that the vehicle is properly maintained, reducing the risk of expensive repairs or replacement.

3. Clarity: A company vehicle use agreement form provides clarity for both the employee and the employer about the expectations, restrictions, and conditions of using the company vehicle.

What Should be Included in a Company Vehicle Use Agreement Form?

A company vehicle use agreement form should include the following information:

1. Identification: The form should include the name of the employee, the description of the vehicle, and the registration number.

2. Purpose: The purpose of the use of the vehicle should be clearly stated. For instance, is it for work-related purposes only, or can the employee use the vehicle for personal reasons?

3. Maintenance: The agreement should specify the maintenance responsibilities of both the employee and the company. For example, the employee should take care of regular maintenance, while the company should handle major repairs or replacements.

4. Insurance: The form should indicate the insurance coverage for the vehicle and the employee. It should also state the procedure for reporting accidents or damage to the vehicle.

5. Fuel Consumption: The agreement should specify who is responsible for fuel consumption and what type of fuel should be used.

6. Restrictions: The form should outline the restrictions regarding the use of the vehicle. For instance, can the employee lend the vehicle to someone else? Can the employee use the vehicle for personal errands after work hours?

7. Consequences: The agreement should specify the consequences for violating the terms of the agreement. The consequences could include disciplinary action, termination, or financial penalties.

Conclusion

A company vehicle use agreement form is an essential document that outlines the expectations, responsibilities, and consequences of using a company vehicle. It is crucial to have a comprehensive agreement to avoid legal issues and ensure that the vehicle is properly maintained. As a business owner, it is your responsibility to protect your business and employees by having a well-drafted company vehicle use agreement form.