Document background
The Car Loan Agreement Between Employer And Employee is a crucial document used when companies in the Philippines offer vehicle financing as an employee benefit. This arrangement, governed by Philippine law, provides employees with an accessible means to vehicle ownership while giving employers security through direct salary deductions. The agreement must comply with various Philippine regulations, including the Labor Code, Civil Code, and Truth in Lending Act. It is typically used when companies want to provide transportation benefits to eligible employees, particularly those requiring vehicles for work purposes or as part of their compensation package. The document includes comprehensive details about the loan terms, vehicle specifications, maintenance requirements, insurance obligations, and provisions for various scenarios such as employment termination or loan default. This type of agreement has become increasingly common in Philippine businesses as a way to attract and retain valuable employees while ensuring proper legal protection for both parties.
