Dinesh Divekar
Business Mentor, Consultant And Trainer
Hr Manager
Bhartiya Akhil

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Can any employer give a company asset to any contractor or vendor for official use like a mobile or SIM?
From India, Kolkata
Normally, not permitted. But for any particular job/exceptional job by him, you can allow the use of mobile/SIM card with special approval of management.
From India, Aizawl
Dear Sreerupa,
Yes, you can handover company's assets like tools, instruments, gadgets etc to the employees of the contractors. However, you need to mention the following into the contract agreement:
a) Request for the allotment of the company asset. This request should come from the contractor. You need to devise the standard form for the allotment. This form should be placed as an Appendix A of the contractor agreement.
b) You should devise one more form for the allotment of the company asset. The format of the form also should be part of the contract agreement. This form should be placed as an Appendix B of the contractor agreement. In the form, you should clearly mention the type, make, model, product serial number etc. Additionally, you need to mention the recipient's details, value of the asset and date of allotment.
c) The assets allotted to the contractor's employee are not transferable. If the situation merits transfer then the authorisation has to come from the contractor. However, a fresh form as mentioned in the Appendix B has to be filled.
d) In the contractor agreement, you should clearly specify the rules of the recovery (i) for the damages caused to the assets out of negligence (ii) loss out of negligence or (iii) theft of the asset.
e) If the recipient of the assets quits the employment without proper handover of the assets then the depreciated value of the asset can be recovered from the contractor. However, you need to include clause to this effect in the contract agreement.
f) Allotment of the SIM card may be done to the contractor's employee however, you need to take undertaking from the recipient for using it for the official telephone calls and not personal calls. Secondly, recovery of the dues for the international calls, or charges incurred beyond a specified limits also has to be mentioned.
You need to hire a consultant for the inclusion of the various clause on the transfer of the assets.
Dinesh Divekar

From India, Bangalore
Dear Sreerupa,
As such there is no law as to any assets like tools, instruments, gadgets etc. can not be given to the vendor or contractor. As rightly said by our senior member Dinesh Divekar, the PE should mention this in the agreement.
I will further say that the PE should justify in giving such assets to the vendors or contractors.
Why PE should give all such gadgets to his vendors or contractors? Please bear in mind, any mischief or crime committed by the person who is having the possession of gadget, the owner may be liable.

From India, Mumbai
As an addendum to my earlier answer to your query, please avoid allowing your contractor or his employees company owned mobile or SIM, instead you can consider granting mobile allowance, and ceiling to be restricted by company management, depending on usage.
From India, Aizawl
Dear Nair,
Why even to grant mobile allowance to contractor and or his employees? I personally feel it is wrong practise of granting such kind or any kind of allowances to contractors / vendors or their employees. Rest is with you to decide.

From India, Mumbai
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