How to Handle an Employee Refusing to Return Company Laptop After Termination?

Handling Employee Exit with Company Property

I work in an SME as HR. We had an employee who was asked to leave due to discipline issues, although he was good at his work. He was asked to leave immediately. Now, he possesses the company's laptop and has changed the login details for an account that was handled by him. We have not released his salary yet. I spoke with him on the phone, but he said that he'll hand it over only after we hand over his salary to him. Also, his salary is not even 1/4th of the cost of the laptop.

As per my knowledge, there's no specific document that was signed by him, but we do have the Employment Agreement (Joining Letter) that was signed by him, which mentions information about project/work confidentiality but nothing on inventory possession. The company has bills and all the details regarding it. Can you please suggest what can be done?

Looking forward to the earliest reply.

Regards,

Allotment of Company's Assets Without Proper Documentation

Allotment of a company's assets to an employee without proper documentation is nonsensical. How will you prove that the laptop is in the employee's custody? Leave aside obtaining the "Loan Card" from the employee; I doubt whether you had prepared the "Non-returnable Gate Pass" at security as well.

In this forum, several times the query has come up on the allotment of the company's property to the employees. I have provided my replies. Anyway, click the following link: https://www.citehr.com/452041-compan...ml#post2029477

Since the employee has been removed suddenly, withholding the laptop could be his way of settling the score with the management. After all, he is wise enough to calculate the depreciated value of the laptop and the leftover salary amount. The former is bigger than the latter.

Send a letter to his last known address. If he does not return the laptop, then I do not find any action other than a "write-off" action.

As a lesson, you may start maintaining the "Fixed Asset Register" at least now.

Thanks,

Dinesh V Divekar

Handling Unauthorized Possession of Company Assets

It is mentioned that you have received the bills and all details, including documentation regarding the serial number of the asset or ID, etc., of the laptop. You can call him once again, probably record the conversation, and then write to him to return the assets within a specified date, threatening legal action, etc. Otherwise, you may straight away file an FIR for theft because the asset was taken away by him without permission. You have documents to prove that it belongs to the company. When an employee takes away any material without authorization, it amounts to theft. Not taking strict action on this may prompt other employees to resort to similar acts in the future. Proper documentation, as suggested by Mr. Dinesh V Divekar, is a must-follow.

Resolving Employee Account and Equipment Issues

As you have mentioned that the employee has changed the login details of the account, check with your IT Department. I believe the IT team can easily revert the login.

Secondly, as you have said that his salary is due to him, prepare his salary and call him to the office. Inform him that he has to sign the salary settlement and bring the laptop with him. Thus, if he arrives at the office, let him sign the clearance, return his laptop, and receive his due salary.

If the above doesn't work, then you may take legal action.

Regards

You have given your suggestion, which is fine, but it is too naive. The person who takes the company's laptop is a perfect scheming person. Whether the naiveties that you have suggested will work against him remains to be seen.

Steps to Resolve the Laptop Issue

As you have mentioned that the employee has changed the login details of the account, check with your IT Department. I believe the IT team can easily revert the login. Secondly, as you have said that his salary is due to him, prepare his salary and call him to the office. Inform him that he has to sign the salary settlement and bring the laptop with him. Thus, if he arrives at the office, let him sign the clearance, return his laptop, and receive his due salary. If the above doesn't work, then you may take legal action.

Regards,
DVD

Dear Mr. Dinesh,

There was a procedure for getting the inventory document signed, but this all happened due to the absence of the HR as I just joined a few weeks before. If it's about proving it, can it be done as the company does have the bills and the Inventory Serial No.? Won't that be enough to prove? It's almost a clear case of possessing somebody's property by force.

In the meantime, I have sent an official email to the person stating that please leave the office laptop, and after that, only your dues would be cleared. Thanks for your valuable suggestions and guide me further as and when required.

Many Thanks,
Axita

Legal Action for Unauthorized Possession of Company Asset

As rightly said by VK Sajan, you can file an FIR against the employee for unauthorized possession of a company asset, i.e., a laptop. Beforehand, wait for the reply to the official letter you have sent. If you are not getting any response, send him/her a reminder stating that the company will be forced to take legal action against them.

Regards

Thank you all for your valuable comments. They helped me to some extent in finding a way out of the problem.

Inventory Mention in Employment Agreement

Just one more thing here, could you suggest if I should mention anything related to the inventory in the Employment Agreement only? If yes, what and how specifically should I mention it?

Regards

Addressing Asset Management Issues in Your Organization

Your number one problem is that you did not obtain a loan card from the employee. Not only should you obtain a loan card, but the employee should also renew this loan card every quarter.

There is no need to mention in the appointment letter about returning the company's assets at the time of exit. At the time of entry into the organization, we issue the appointment letter. Why should we talk about what the employee should do at the time of separation when entering the organization?

Standing Orders and Asset Return

What about standing orders? Have you established standing orders for your company? The employee is liable to return the company's assets; this clause can be included in the standing orders. This will strengthen your case more than including the clause in the appointment letter.

Audit and Asset Management Concerns

The incident highlights the glaring loopholes in your organization. The employee has been allotted company assets without obtaining any loan card; why was this fact not captured in the audit? You also do not have a "Fixed Asset Register." Why did your finance department not bring this to notice earlier? Or is it that an audit did not happen at all?

In light of this incident, I recommend telling your management to get a third-party audit done of all departments. Who knows, there could be more skeletons in the closets. Instead of waiting for these skeletons to tumble out one fine day, it is important to be proactive and find out where they are!

If your company allots laptops without a proper loan card to the employee, then your purchase department will likely have far more anomalies. Please do not dismiss my argument as visceral.

Thanks,

DVD

Recovery of Company Assets

Possession of the company's assets is recoverable. You can lodge a criminal complaint for the theft of the laptop, and it will be recovered. However, if he contests through the court, the company will have to pay a huge compensation since he was a good worker. If he was dismissed following appropriate regulations, such as a complaint against him, issuance of a memo, an inquiry, and a written statement, only then will the company be in a safe zone.

So, invite him to hand over the recovered laptop and surrender his pay.