It’s a situation no business owner wants to deal with: a former employee is no longer with your company, but they’re still hanging onto your property—maybe it’s a laptop, maybe a phone, or worse, something with customer data or sensitive access.
The excuses roll in—or maybe they ghost you entirely. Either way, your business is now stuck in limbo, waiting for an asset that might never come back.
Sound familiar?
Whether it’s a remote employee who’s moved across the country or someone you had to let go unexpectedly, failing to retrieve company-owned equipment is more than just a minor inconvenience. It’s a liability.
Here’s what you need to know to protect your business, recover your assets, and prevent this from happening again.
Start with a Solid Offboarding Process
The best way to deal with an employee not returning company equipment is to plan for it before it ever happens.
This means having a clear, detailed offboarding process in place that kicks in as soon as the decision to terminate an employee is made—or even when they resign.
Here’s what that should include:
- An asset checklist: This should detail every piece of equipment the employee was issued—laptops, mobile devices, ID badges, credit cards, keys, or anything else company-owned. Be specific and include serial numbers.
- Assigned responsibilities: Make it someone’s job (usually HR or IT) to track down each item. Don’t leave this to chance or casual Slack messages.
- Deadline-driven procedures: Establish a clear return timeline, and communicate it. Whether it’s 48 hours or 5 business days, set expectations from the start.
What’s more, treat offboarding like onboarding—build the process into your company culture. If employees are aware from day one that company gear must be returned when they leave, you’re already reducing your risk down the road.
Use Signed Agreements and Documentation
Don’t rely on goodwill alone. If you haven’t already, it’s time to tighten up your paperwork.
During onboarding, employees should sign documents acknowledging the receipt of company equipment, the condition it’s in, and their responsibility to return it. These should include:
- Equipment issue forms
- Acceptable use policies
- Remote work equipment agreements (if applicable)
- Non-disclosure agreements (if company data is involved)
These aren’t just formalities—they’re protective measures. If you ever have to pursue legal action or file a claim, these documents can make or break your case.
Digital signatures make this easier than ever. And if you’re still using paper forms? It’s time to move on.
Communicate Clearly and Professionally
So the employee’s gone, and the equipment’s still in their possession. What now?
Start with a professional, clear message. Send it via email and follow up with a call or text if needed. The key here is tone. Be respectful, but firm. Don’t let emotion drive the communication.
Here’s a basic template:
Subject: Return of Company Equipment
Hi [Name],
This is a reminder that per your exit paperwork and employment agreement, the following company-issued items must be returned: [List equipment].
Please ship them to [Company Address] no later than [Date]. If you need a prepaid shipping label, let us know and we’ll send one your way.
Let us know if you have any questions.
Best,
[Your Name]
Keep records of every communication attempt. If things escalate, this paper trail will be important.
Also, make it easy for them to comply. Offering prepaid shipping labels or drop-off locations reduces the likelihood of “I couldn’t figure out how” excuses.
Leverage Technology to Protect Company Assets
In many cases, the most valuable part of a device isn’t the device—it’s the data on it. That’s why it’s critical to have a remote device management (MDM) system in place before equipment ever leaves your office.
Here’s what tech can do for you:
- Lock or wipe lost or stolen devices remotely
- Disable access to cloud-based apps and internal software
- Track the last known location of devices with GPS
- Monitor file access, downloads, and transfers in real time
If the employee refuses to return the laptop, for example, but you’ve already locked it down and scrubbed the drive, that laptop is little more than a paperweight.
Even better—install tracking tools during onboarding. That way, you’re not scrambling to secure things after the fact.
Know Your Legal Options
If weeks have gone by and you’re still hearing crickets, it may be time to bring in your legal team.
This doesn’t mean immediately filing a lawsuit—but it does mean sending a formal demand letter.
A demand letter should include:
- A detailed description of the property still in their possession
- A copy of the signed agreement or equipment policy
- A deadline for return
- The legal consequences of non-compliance
Sometimes, just seeing that letterhead is enough to prompt a response.
If that doesn’t work, your options include small claims court, filing a police report (if the item’s value qualifies as theft in your state), or seeking reimbursement via payroll deductions if your state allows it (and the employee hasn’t received their final check yet).
Not sure what you can legally do? Call your attorney. Employment laws vary by state, and the last thing you want is to turn your equipment problem into a legal problem.
Recovering Assets Without Burning Bridges
Here’s the thing—most employees aren’t trying to scam you. They’re just busy, distracted, or embarrassed. A gentle reminder usually does the trick.
Still, it’s important to be consistent in how you handle these situations.
If you’re too lenient, people may not take return requests seriously. If you’re too aggressive, you could damage your reputation—or find yourself dealing with a retaliation claim.
Here are a few balanced strategies:
- Offer a deposit refund or final paycheck upon return
- Allow drop-off at a neutral location (especially useful for remote teams)
- Send friendly reminders, not threats, for the first few days
At some point, it becomes a business decision: is chasing a $400 tablet worth the effort? In some cases, no. But for higher-ticket items or sensitive devices, it’s not about cost—it’s about risk.
Prevent Future Equipment Loss
Once you’ve been burned, you’ll never want to go through it again. That’s why companies that get serious about this early have the fewest issues down the line.
Here’s how to reduce your risk moving forward:
- Centralize your asset tracking – Use asset management software that logs devices, serials, users, and return dates.
- Add return clauses to employment contracts – Make it part of the job offer that all gear must be returned or replaced.
- Set return deadlines that align with final paychecks – Don’t send the last check until the device is back (if your state allows it).
- Automate reminders and follow-ups – Use HR tools that send automatic notifications during the offboarding workflow.
- Audit your processes quarterly – Keep your policies updated to match your team’s needs, especially if you’re scaling or growing fast.
The cost of a solid offboarding policy is small compared to the long-term loss of unrecovered equipment, data breaches, or reputation hits.
Closing Thoughts
You can’t stop every employee from going off-script after they leave your company. But you can control how prepared you are when it happens.
Recovering equipment from a terminated employee isn’t just about getting a device back—it’s about protecting data, maintaining security, and keeping your business moving without unnecessary disruption.
Make sure your onboarding process sets clear expectations. Have your paperwork in order. Lean on technology when you need it. And when problems arise, respond with professionalism—not panic.
This isn’t about being overly cautious. It’s about being smart. Because in today’s digital-first workplace, protecting your gear is protecting your business.