Equipment & Expenses Clause
Also called: Business Expense Reimbursement · Equipment Provision Clause
An equipment and expenses clause specifies what tools, equipment, or reimbursable costs an employer provides or covers for an employee or contractor to do their job — laptops, software licences, travel, and other business expenses — and the process for claiming reimbursement. Its absence leaves cost responsibility informally assumed rather than agreed.
In more detail
For remote and hybrid roles especially, what counts as a reimbursable business expense versus a personal cost the individual bears has become a genuinely common source of friction — this clause removes the ambiguity by stating it upfront.
A reasonable clause specifies categories of covered expenses, any approval process required before spending (particularly for larger purchases), and a claims process with a defined submission and reimbursement timeline.
For contractors specifically, this clause also intersects with independent contractor status — an employer providing extensive equipment and covering most operating costs can, in some legal systems, be a factor courts weigh when assessing whether a contractor is genuinely independent or functions more like an employee.
An employment contract specifies the company provides a laptop and covers reasonable internet costs for remote work, and reimburses pre-approved business travel expenses within 30 days of submission with valid receipts.
What our lawyers check
- What equipment and expense categories are covered
- Any approval process required before expenses are incurred
- The reimbursement claims process and timeline
- For contractor relationships, whether expense provision is consistent with genuine independent contractor status
Contracts where this clause matters
Related terms
This definition is general information about commercial contracting practice, not legal advice. How a clause operates depends on the specific wording of your agreement and the law that governs it. For advice on your contract, have it reviewed by a lawyer.
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