Company Property Agreement Template

Company Property Agreement Template

When you hand an employee a laptop, a set of keys, a company phone, or any other piece of equipment, you need a record of what was issued and what is expected in return. This company property agreement template gives you a straightforward document to track equipment assignments, set expectations for care, and make the return process clear when an employee leaves.

For small businesses, this does not need to be complicated. A simple agreement signed at the time of issuance protects both sides and avoids awkward conversations later.

When to Use This Agreement

• During onboarding when issuing a laptop, phone, keys, tools, or uniforms
• When assigning a new piece of equipment to an existing employee
• When swapping old equipment for new (document both the return and the new issue)
• As part of your offboarding checklist to ensure everything is returned

Company Property Agreement

Company Name: [Company Name]

Effective Date: [Date]

Section 1: Employee Information

Section 2: Equipment Issued

Complete one row for each item issued. Add rows as needed.

Common items to include: Laptop, desktop computer, monitor, keyboard, mouse, phone, tablet, keys, access cards/badges, tools, uniforms, safety equipment, company credit card, parking pass, chargers and cables, carrying cases.

Section 3: Condition Acknowledgment

By signing this agreement, the employee acknowledges that:

1. I have received and inspected all items listed in Section 2.
2. The condition noted for each item is accurate at the time of issuance.
3. All equipment is in working order unless otherwise noted below.

Notes on condition or any pre-existing damage:

Section 4: Employee Responsibilities

The employee agrees to the following terms regarding company property:

Care and Use

• Use all company property solely for business purposes unless otherwise authorized in writing.
• Take reasonable care to protect company property from damage, loss, or theft.
• Keep equipment clean, maintained, and stored securely when not in use.
• Do not modify, alter, or repair company equipment without prior written approval.
• Do not lend company property to any third party, including family members, without authorization.
• Report any damage, malfunction, loss, or theft to [your manager / HR / the business owner] within [24 / 48] hours of discovery.

Data and Security

• Do not install unauthorized software on company devices.
• Follow all company password and security policies.
• Do not store personal files on company devices beyond what is incidental and reasonable.
• Understand that company devices and their contents are company property and may be accessed, monitored, or reviewed by [Company Name] at any time.

Maintenance

• Return equipment for scheduled maintenance, updates, or inspections when requested.
• Do not attempt repairs or hire outside repair services for company equipment without approval.

Section 5: Return Policy

The employee agrees to return all company property listed in this agreement under any of the following circumstances:

• Upon termination of employment (voluntary or involuntary)
• Upon request by the employee's manager or [Company Name]
• When equipment is being replaced or upgraded
• At the end of any temporary assignment or project requiring specialized equipment

Return timeline: All company property must be returned no later than the employee's last day of work unless alternative arrangements are made in writing. For remote employees, equipment must be shipped back within [5 / 7 / 10] business days of the separation date, using a prepaid shipping label provided by the company.

Return condition: Equipment should be returned in the same condition as issued, minus normal wear and tear. "Normal wear and tear" means the expected decline in condition from reasonable, careful use -- minor cosmetic scuffs, normal battery degradation, and similar changes that occur with everyday use.

Data removal: Before returning any device, the employee must [back up and remove all personal files / notify IT so the device can be wiped]. The company will perform a full data wipe on all returned devices.

Section 6: Liability

Damage or Loss

If company property is damaged beyond normal wear and tear or is lost due to the employee's negligence or intentional misuse, the employee may be held financially responsible for the repair or replacement cost, up to the item's current fair market value.

[Company Name] will assess each situation individually. The employee will be notified in writing of any amount owed and will have the opportunity to discuss the assessment before any deduction is made.

Payroll Deduction Authorization

The employee authorizes [Company Name] to deduct the cost of unreturned, lost, or damaged equipment from their final paycheck, where permitted. This deduction will not exceed the item's current fair market value.

Theft

If company property is stolen, the employee must file a police report and provide a copy to [Company Name] within [48 hours / 5 business days]. An employee will not be held financially responsible for theft that occurs despite reasonable precautions, provided a police report is filed promptly.

Section 7: Equipment Return Log

Complete this section when equipment is returned. This may be filled in at a later date.

Notes on condition at return:

Section 8: Signatures

Employee Acknowledgment

I have read and understand this Company Property Agreement. I acknowledge receipt of the items listed in Section 2 and agree to the terms outlined in this document.

Company Representative

How to Customize This Template

1. List your typical equipment. If you always issue a laptop and a phone, pre-fill those rows in Section 2 so the form is faster to complete during onboarding.
2. Set your return timeline. Five business days is standard for remote employees. Adjust based on your shipping logistics and how urgently you need equipment back.
3. Decide on the liability approach. Some businesses choose not to hold employees financially liable for accidental damage. Others include a deductible or cap. Choose what fits your culture.
4. Add specific security requirements. If your business handles sensitive client data, add language about encryption, VPN use, or specific security software that must remain installed.
5. Review your deduction approach. Some locations restrict or prohibit payroll deductions for damaged or lost equipment. Confirm what applies to your business before finalizing Section 6.
6. Simplify if needed. If you only issue one or two items, you can reduce the equipment table and remove rows you do not need.

Tips for Small Businesses

• Photo-document everything. Take a quick photo of each item before handing it over. This removes any debate about pre-existing damage when the item comes back.
• Add it to your onboarding checklist. Make this form a standard part of day-one paperwork so nothing slips through the cracks.
• Use it for offboarding too. Pull out the signed agreement on an employee's last day and check each item off as it is returned. Complete the return log on the spot.
• Track serial numbers. Even in a small team, knowing which laptop belongs to whom saves time when something breaks or needs to be replaced.

Keeping track of who has what equipment across your team is much easier with a central system. Boring HR's Team Tracker lets you store employee records, documents, and equipment assignments in one place, so you always know what has been issued and what needs to come back.