Most employers have multiple legal bases for demanding return of property:
| Source | Typical Language |
|---|---|
| Offer letter / Employment agreement | "Upon termination, Employee agrees to return all Company property, including but not limited to computers, phones, access badges, keys, documents, and data." |
| Employee handbook | "All equipment, materials, and information provided to employees remain Company property and must be returned immediately upon separation." |
| IT/Acceptable Use Policy | "Employees have no expectation of privacy in Company devices or systems. All hardware and data must be returned upon request." |
| Confidentiality agreement | "Employee certifies that upon termination, all confidential information, documents, and materials (physical and electronic) will be returned or destroyed." |
| Separation agreement | "As a condition of severance, Employee agrees to return all Company property and certify destruction of all copies of confidential information." |
| Legal Theory | Application | Limitations |
|---|---|---|
| Breach of contract | Violation of agreement to return property | Requires written contract with clear return obligation |
| Conversion | Wrongful exercise of dominion over your tangible property (laptops, phones, etc.) | Requires intent to deprive you of possession; may not apply to data |
| Trespass to chattels | Wrongful interference with your possessory rights in property | Generally for physical property; digital property is gray area |
| Trade secret misappropriation | Retention of confidential data = ongoing misappropriation | Must qualify as trade secret under CUTSA/DTSA |
| Computer Fraud (CFAA) | Unauthorized access to company systems after termination | Narrow application; mainly for hacking or continued system access, not passive retention |
Many agreements require the departing employee/contractor to certify that they have:
If your policy includes certification requirements, demand a signed certification statement as part of the return process. This creates powerful evidence if you later discover they retained data.
| Scenario | Timing |
|---|---|
| Voluntary resignation | Send checklist/demand on last day of work or within 24 hours of departure |
| Termination for cause | Collect property immediately during termination meeting; send formal demand same day |
| Layoff / reduction in force | Collect during exit meeting; send confirmation/demand within 24 hours |
| Contractor project completion | Send with final payment or as condition of final payment |
| Discovery of missing property post-departure | Send immediately upon discovery; delay weakens urgency and may suggest you don't care |
| Industry | Additional Property to Recover |
|---|---|
| Healthcare | Medical devices, pagers, HIPAA-compliant laptops, patient data (must be securely destroyed) |
| Construction / field services | Tools, safety equipment, company vehicles, fuel cards, uniforms |
| Sales | Demo products, sample inventory, client gift inventory, corporate credit cards |
| Tech / software | Development environments, code repositories (ensure no unauthorized forks), API keys |
| Finance | Trading platform access, market data terminal credentials, Bloomberg terminal logins |
Maintain an asset inventory for each employee/contractor from day one. Track:
When an employee departs, cross-reference this inventory in your demand letter to show exactly what's missing.
Even if the employee returns the physical hardware, confidential data may still exist in multiple locations:
| Location | Risk | How to Address |
|---|---|---|
| Personal devices | Files emailed to personal accounts, downloaded to personal laptop/phone | Demand certification of deletion from all personal devices |
| Personal email | Forwarded company emails containing confidential info | Demand deletion of all forwarded emails and attachments |
| Personal cloud storage | Dropbox, Google Drive, iCloud, OneDrive synced with company files | Demand deletion and certification; may request access to verify if litigation likely |
| External hard drives / USB | Backups or copies made "just in case" | Demand return of all external media and certification that no copies exist |
| Cloud collaboration tools | Slack messages, Notion pages, Asana tasks exported or saved | Revoke access immediately; demand deletion of any offline copies |
| Code repositories | GitHub forks, GitLab mirrors, local git clones on personal machines | Demand deletion of all forks, clones, and local repositories |
Include a certification template in your demand letter requiring the employee to sign and return:
CERTIFICATION OF RETURN AND DELETION
I, [Employee Name], hereby certify under penalty of perjury that:
- I have returned all Company property, including all hardware, documents, access credentials, and materials listed in Exhibit A;
- I have deleted all Company confidential information, documents, files, and data from my personal devices, including computers, phones, tablets, USB drives, and external hard drives;
- I have deleted all Company emails, attachments, and data from my personal email accounts (including [list specific accounts if known]);
- I have deleted all Company data from my personal cloud storage accounts, including Dropbox, Google Drive, iCloud, OneDrive, and any other cloud services;
- I have not retained any copies, backups, or derivatives of Company confidential information in any form or location;
- I have not disclosed any Company confidential information to third parties, including my new employer;
- I will not access any Company systems, accounts, or data after the date of this certification.
Signed: _________________________
Date: _________________________
If the employee used a personal device for work under a BYOD policy, you face additional challenges:
| Issue | Solution |
|---|---|
| Can't demand return of personal device | Demand deletion of company data and apps; if company used MDM (mobile device management), remotely wipe corporate partition |
| Commingled personal and work data | Demand deletion of work data only; cannot force deletion of personal data |
| No visibility into compliance | Require written certification; reserve right to pursue forensic verification if litigation ensues |
| Employee refuses to delete | Pursue trade secret misappropriation claim and seek court order |
There's a tension between demanding deletion and preserving evidence for litigation:
Preservation notice language:
You are hereby instructed to preserve all evidence related to your access, use, and retention of [Company]'s confidential information and property, including:
- All devices (computers, phones, tablets, USB drives) that may contain Company data;
- All emails, text messages, and electronic communications;
- All cloud storage accounts and file-sharing services;
- All documents, files, and data in any format.
Do not delete, alter, or destroy any of these materials. Failure to preserve evidence may result in sanctions, including adverse inference instructions and spoliation penalties.
Dear [Former Employee/Contractor]:
As you are aware, your employment with [Company] ended on [date]. Pursuant to [Employment Agreement / Employee Handbook / IT Policy] Section [X], you are required to return all Company property immediately upon termination.
Our records indicate that you have not yet returned the following items:
Item Description / Serial Number Value Laptop MacBook Pro 16", Serial: C02X12345678 $2,800 iPhone iPhone 14 Pro, IMEI: 123456789012345 $1,200 Access badge Badge #4521 $50 Total Value: $4,050 DEMANDS:
- Return all items listed above to [Company Address, Attn: [Contact Name]] by [specific date, typically 10 days from letter];
- Complete and return the attached Certification of Return and Deletion, confirming that you have deleted all Company data from personal devices and cloud storage; and
- Contact [IT Contact Name] at [email/phone] to arrange return logistics. We will provide a prepaid shipping label upon request.
CONSEQUENCES OF NON-COMPLIANCE:
If you fail to return the property by the deadline, [Company] will pursue all available legal remedies, including:
- A claim for conversion and recovery of the fair market value of unreturned property ($[total value]);
- Trade secret misappropriation claims for retained confidential data;
- Withholding of final paycheck [if permitted by state law] to offset the value of unreturned property;
- Attorneys' fees and costs; and
- Referral to law enforcement if appropriate.
Please contact me immediately if you have any questions.
Sincerely,
[Sender Name / HR Director / Attorney]
| Approach | When to Use | Sample Language |
|---|---|---|
| Cooperative | Amicable departure, valued former employee, likely just forgot | "We know you've been busy with your transition. As a reminder, please return the following items at your earliest convenience..." |
| Firm but professional | Standard departure, property not returned within reasonable time | "Pursuant to your contractual obligations, you must return all Company property by [date]. Failure to do so will result in [consequences]." |
| Aggressive | Termination for cause, suspected theft, unresponsive to initial requests | "Your failure to return Company property constitutes conversion. We will pursue immediate legal action, including claims for damages, attorneys' fees, and potential criminal referral." |
When requesting return or forensic imaging of devices, be mindful of privacy concerns:
| Situation | Privacy Concern | Balanced Approach |
|---|---|---|
| Company-issued device (no personal use allowed) | Minimal—employee had no expectation of privacy | Demand immediate return; forensic imaging is permissible |
| Company device with incidental personal use | Some personal data may exist (personal emails, photos) | Offer neutral third-party imaging with filter protocols to exclude personal data |
| BYOD (personal device with company data) | High—significant personal data commingled | Cannot demand return of device; can only demand deletion of company data and certification |
If litigation is likely and you need to verify data deletion:
To verify your compliance with the return and deletion obligations, we propose the following protocol:
- You will deliver the laptop to [Neutral Forensic Firm], a mutually agreed-upon third-party forensic examiner;
- The examiner will create a forensic image of the device and search for Company-related data using the following search terms: [list specific terms, file extensions, email domains];
- The examiner will filter out personal data unrelated to [Company] business, including personal emails (non-Company domains), personal photos, and privileged attorney communications;
- The examiner will provide a report to [Company] identifying any Company data found on the device, without disclosing your personal information;
- [Company] will bear the cost of the forensic examination.
This protocol protects your privacy while allowing us to verify compliance with your contractual obligations.
If you have remote wipe capabilities (via MDM or "Find My" features), consider these factors:
| Factor | Consideration |
|---|---|
| Legal right to wipe | Your IT policy should reserve right to remotely wipe company-issued devices |
| Preservation concern | If you may need to prove data theft, wiping destroys evidence—consider imaging first |
| BYOD devices | You can wipe corporate partition/apps, but cannot wipe entire personal device without consent |
| Notice to employee | Best practice: notify employee before wiping to avoid claims of destruction of personal data |
I assist companies in recovering property and confidential data from former employees and contractors. I draft demand letters, coordinate forensic imaging, negotiate return protocols, and pursue litigation for conversion and trade secret misappropriation when necessary.
Contact me for a consultation. I'll draft a demand letter, coordinate return logistics, and if necessary, pursue legal action to recover your property and data.
Email: owner@terms.law