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Vehicle Use Agreement

This Vehicle Use Agreement outlines the terms and conditions for an employee's authorized use of a company vehicle for business and, where permitted, personal use. It is used to ensure responsible use, maintenance, and compliance with company policies and legal requirements.

Updated 15d ago
vehicle use agreementcompany policyemployee agreementfleet managementmotor vehicleHR documentSouthern Africa

{{company_name}}

{{company_address}}

Phone: {{phone}} | Email: {{email}}

Website: {{website}}

VEHICLE USE AGREEMENT

This Vehicle Use Agreement ("Agreement") is made and entered into on this {{date_of_agreement}} day of {{month_of_agreement}}, {{year_of_agreement}}, by and between:

{{company_name}}, a company duly registered in accordance with the laws of {{country}}, with its principal place of business at {{company_address}} (hereinafter referred to as "the Company");

AND

{{employee_name}}, an employee of the Company, residing at {{employee_address}}, and holding identity number {{employee_id_number}} (hereinafter referred to as "the Employee").

WHEREAS the Company owns or leases a motor vehicle and agrees to permit the Employee to use such vehicle under the terms and conditions set forth herein.

1. Vehicle Details

The Company hereby assigns the following vehicle to the Employee for business purposes:

Make: {{vehicle_make}}

Model: {{vehicle_model}}

Year: {{vehicle_year}}

Registration Number: {{vehicle_registration_number}}

Chassis Number: {{vehicle_chassis_number}}

Engine Number: {{vehicle_engine_number}}

Current Odometer Reading: {{odometer_reading_at_handover}} km

2. Permitted Use

2.1 The Company vehicle is primarily provided for business use in the performance of the Employee's duties.

2.2 Personal use of the vehicle is {{permitted/not_permitted_select_one}}. If permitted, personal use must be within reasonable limits and in accordance with the Company's Vehicle Policy.

2.3 The vehicle may not be used for illegal activities, for-profit transportation services (e.g., ride-sharing), or by unauthorized drivers.

2.4 The Employee shall ensure that only licensed drivers operate the vehicle. In no event shall any person without a valid driver's license operate the Company vehicle.

3. Employee Responsibilities

3.1 **Care and Maintenance:** The Employee is responsible for the general care, cleanliness, and security of the vehicle. This includes ensuring regular fueling, checking fluid levels, tire pressure, and reporting any maintenance issues promptly to {{department_for_reporting_maintenance}}.

3.2 **Traffic Laws:** The Employee shall at all times adhere to all applicable traffic laws, regulations, and bylaws of {{country}} and any other jurisdiction in which the vehicle is operated.

3.3 **Fines and Penalties:** All traffic fines, violations, and penalties incurred due to the Employee's operation of the vehicle are the sole responsibility of the Employee, unless such fines are directly attributable to a demonstrable vehicle fault existing prior to the Employee's operation, and duly reported.

3.4 **Accidents:** In the event of an accident, the Employee must immediately report the incident to {{contact_person/department_for_accidents}} and follow the Company's accident reporting procedures.

3.5 **Security:** The Employee shall ensure the vehicle is securely parked and locked when unattended. Any theft or attempted theft must be reported immediately to the police and the Company.

3.6 **Return of Vehicle:** Upon termination of employment or as otherwise requested by the Company, the Employee agrees to return the vehicle in good condition, reasonable wear and tear excepted, to the Company by {{return_date}} (if applicable) at {{return_location}}.

4. Insurance

The Company maintains comprehensive motor vehicle insurance for the assigned vehicle. The Employee acknowledges that any misuse of the vehicle outside the scope of this Agreement or the Company's Vehicle Policy may void insurance coverage, and the Employee may be held personally liable for any damages or losses incurred.

Excess Amount Payable by Employee (if applicable, per incident): {{insurance_excess_amount}}

5. Fuel and Expenses

5.1 **Fuel:** The Company will be responsible for fuel costs for business use. The Employee will be responsible for fuel costs associated with personal use, if personal use is permitted and not otherwise covered by a separate arrangement.

5.2 **Tolls/Parking:** The Employee shall be reimbursed for business-related tolls and parking fees upon submission of valid receipts according to the Company's expense policy.

5.3 **Logbook:** The Employee agrees to maintain an accurate and up-to-date logbook detailing all business and personal mileage, as required by the Company and tax authorities.

6. Company's Rights

6.1 The Company reserves the right to inspect the vehicle at any time, with reasonable notice where practicable.

6.2 The Company reserves the right to withdraw the privilege of vehicle use at its sole discretion, with or without cause, and at any time.

6.3 The Company may amend the terms of this Agreement or its Vehicle Policy at any time, with appropriate notification to the Employee.

7. Breach of Agreement

Any breach of this Agreement or the Company's Vehicle Policy by the Employee may result in disciplinary action, up to and including termination of employment, and may result in the Employee being held liable for any damages, losses, or costs incurred by the Company as a result of such breach.

8. Governing Law

This Agreement shall be governed by and construed in accordance with the laws of {{country}}.

ACCEPTANCE AND ACKNOWLEDGEMENT

By signing below, the Employee acknowledges that they have read, understood, and agree to abide by all the terms and conditions outlined in this Vehicle Use Agreement and the Company's Vehicle Policy (a copy of which has been provided to the Employee).

_____________________________

{{employee_name}}

Employee Signature

Date: {{signature_date}}

_____________________________

For and on behalf of {{company_name}}

Name: {{company_representative_name}}

Title: {{company_representative_title}}

Signature

Date: {{signature_date}}

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