On its face, the “Return of Company Property” clause is pretty simply – give the company its stuff back. For physical items (laptop, phone, documents, equipment, etc.), this should be simple. The only advice we provide to our clients with respect to returning physical items is to have the employer pay the cost of shipping.
Some employees want to keep their company laptop. However, the laptop (and the contents of the laptop) is company property. Nevertheless, we have seen situations where departing employees were allowed to keep or purchase their company laptop.
Employees are also required to return intellectual property and work product to their employer to the extent that it is on the employee’s personal computer. While your employer does not have the right to inspect your computer, it does have the right to demand that you either destroy or return their intellectual property.
Some employees worry about getting their personal belongings back from the office. The same rules apply here – the employer is required to return the employees’ belongings to them.
SAMPLE RETURN OF PROPERTY CLAUSES:
You agree that payment of the severance benefits set forth in this Agreement is contingent upon you signing this Agreement and returning all Company property and confidential and/or proprietary information in your possession or control, including, but not limited to, identification badges, keys, computers, cellular telephones, other electronic devices, and credit cards.
Employee covenants and agrees to return all property of the Released Parties in his possession, custody, or control (including, but not limited to, phone, keys, electronic devices, office equipment, records, identification cards, files, reports, computer disks, rolodexes, electronic passwords and documents containing confidential or business information, whether in hard copy or electronic format) to the Company on or before the Separation Date (or immediately upon request of the Company). Upon Employee’s re-execution of this Agreement as set forth below, Employee acknowledges that he has returned all such property of the Released Parties in his possession, custody, or control to the Company.