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mukulgupta
All senior employees in our office carry a laptop and we want to get an agreement signed. The draft copy has been prepared by our lawyer and I am confused regarding these undermentioned clauses, can you advise if this are appropriate? i.e. is it legal/ethical to ask employees to sign to these clauses.

>> BEGIN <<

1. The COMPANY shall not be liable to reimburse the Employee for any liability, claims, loss, damage, expenses of any kind or nature on the account of the following:

A. The machine being seized by any statutory authority for violation of the laws and/or any other reason incidental thereto;

B. In relation to any repairs, servicing, maintenance or adjustments thereof or for any intentional damage caused due to the negligence of the employee;

C. The COMPANY shall be under no liability with respect to the Employee’s rights or position in respect to any law relating to taxation or any other such matters.

2. The Employee shall on no account cause or permit the machine to be seized under any distress or for any proceeding for attachment or otherwise, or in execution of any legal process, decree etc, and in the case of such seizure, distress etc, the employee shall get the same removed at its own cost.

3. The Employee shall be solely responsible for the proper upkeep and maintenance of the said machine and shall carry out such repairs, minor or major, and normal overhauling of the same as a man of ordinary prudence would do. The Employee will, at its own cost and expense, keep the machine protected from any harm caused to it and maintain and keep the same in good condition.

4. It shall be the responsibility of the Employee to ensure that adequate back-ups of important files are kept in other machines of the COMPANY in order to protect the project from suffering any unreasonable delay.

>>END<<

Thanks for responding.

From India, Calcutta
BHAVAN
19

Dear Mukul,
The clauses are required to prevent the employee misusing the office property. In the event of misuse, the employee is responsible and the organisation is indemnified. There is no question of ethics involved in these clauses. As a HR person, we have to anticipate the avenues of misuse of office property and we have to include clauses in the agreement. If any problem arises due to misuse like seizure of property by authorities, it will be HR/Admin who has to face the music, remember...
Regards
Bhavan

From India, Bangalore
mukulgupta
Thanks Bhavan. I am mainly considered about following clauses:
3. The Employee shall be solely responsible for the proper upkeep and maintenance of the said machine and shall carry out such repairs, minor or major, and normal overhauling of the same as a man of ordinary prudence would do. The Employee will, at its own cost and expense, keep the machine protected from any harm caused to it and maintain and keep the same in good condition.
4. It shall be the responsibility of the Employee to ensure that adequate back-ups of important files are kept in other machines of the COMPANY in order to protect the project from suffering any unreasonable delay.
Is it appropriate?

From India, Calcutta
mukulgupta
The contract says:
The COMPANY shall not be liable to reimburse the Employee for any liability, claims, loss, damage, expenses of any kind or nature on the account of the following:
1. The machine being seized by any statutory authority for violation of the laws and/or any other reason incidental thereto;
2. In relation to any repairs, servicing, maintenance or adjustments thereof or for any intentional damage caused due to the negligence of the employee;
3. The COMPANY shall be under no liability with respect to the Employee’s rights or position in respect to any law relating to taxation or any other such matters.
It it adequate?

From India, Calcutta
BHAVAN
19

Dear Mukul,

My views on your query :

Point No.1 and 3 or OK. Clause regarding back-up is very much required.

Regarding point no.2 about servicing, in my organisation. the laptop are covered under warranty or AMC. Any repairs/servicing is done under AMC. The AMC charges are paid by the organisation as the asset is in the name of the organisation and it is given to the employee only to utilise the asset for official use. The user will refer the laptop to my IT dept who will arrange for necessary repairs/service/maintenance. I am not aware of any such arrangement in your organisation and hence the clauses can be inserted as per your organisation's policy.

Regarding Mr.Yedulaprakash's feedback, I wish to give my views :

The clause regarding loss of property is included so that the employee will take adequate care of the property. In my organisation, we have included a clause which says that employee will replace the laptop on his own cost immediately in the event of loss. The company will lodge the insurance claim and whatever the insurance amount received will be returned to the employee.

I had a very bitter experience when one of my employee lost the laptop. While he replaced on his own cost, the insurer refused to entertain the claim. The silly reason given by them is that employee has not taken proper care. The fact is, the employee, a marketing executive was travelling in a crowded bus and he has kep the laptop by his side near the seat and it was lost. The insurance company says that he should have kept the laptop in his lap!!!!!!!! I fought with them and I went to their Regional head level. But of no use.

My advice is please ensure that laptop is insured. The insurance company will give a booklet containing clauses under which the insurance is covered. Take a copy and issue to the user employee under signature. You also need to understand the clauses.

My reply is lengthy but I want to be more informative.

Regards

BHAVAN

From India, Bangalore
rkandadai
17

Nothing too much to get confused of....im sure senior folks would appriciate the same in signing it. Regards RK
From India, Hyderabad
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