Return of the company laptop and phone after termination

After leaving a company, employees must return all work devices, including mobile phones and laptops, by the end of their ordinary notice period. Sorry, you cannot keep your company laptop after termination! Or your phone. After termination, you will have to give your stuff back. But in most cases, not immediately. But what happens if you are released from work duties during the notice period? Understanding the timing and conditions of device return is crucial, and in some cases, employees can negotiate to keep certain devices or purchase them after termination. Our article explains employees’ rights and options regarding company devices after termination.

Key takeaways:

• Employees must return all work devices, such as company mobile phones and laptops, to the employer by the end of their employment. Devices may be used until the end of the notice period if the employee continues working.
• If the employee is released from duties, devices must be returned on the last working day unless a written agreement specifies otherwise.
• Employment contracts or termination agreements may contain different rules, including the possibility for employees to purchase or retain devices.
• Employers may revoke private usage rights under strict legal conditions; unlawful early requests may justify legal action or compensation claims.
• Employees should backup personal data, delete it from company devices, and seek advice if unsure how to comply with return obligations.

When do I have to return my company phone and laptop after termination?

Company equipment such as laptops, smartphones, home office PCs, company cars, and other tools generally remain the property of the employer. All company property must be returned to the employer at the company premises upon the termination of the employment relationship. The exact timing depends, among other things, on the type of termination.

Return obligations during the ordinary notice period

During the ordinary notice period, the following rules apply:

• Standard rule: If the employee works until the end of the ordinary notice period, they may retain and use the company equipment for the performance of their work duties until the end of the notice period.
• Release from work: If the employee is irrevocably released from work during the notice period, the laptop, phone, and other company equipment must be returned on the last day of work, unless otherwise agreed.
• Deviating agreements: Employees and employers can agree in the employment contract, in a release agreement, or in a termination agreement on different rules regarding the return of company property. They can also arrange for laptops, smartphones, and other equipment to transfer into the employee’s ownership, although this is rare.

Example: An employment contract may include a revocation clause allowing the employer to withdraw the use of a smartphone or laptop before the end of the notice period. This is generally possible if (1) the conditions for revocation are sufficiently clear and understandable and (2) the revocation is reasonable for the employee.¹ (3) For a taxable benefit (e.g., company car), a revocation may only take effect at the end of the month.

Check contractual agreements carefully

When reviewing contractual agreements regarding laptops and phones, the exact wording is crucial to determine when specific company property must be returned. Before signing a release or termination agreement, you should verify exactly what the employment contract stipulates (e.g., “In the event of a release, all company equipment must be returned on the last day of actual work, unless otherwise agreed in writing”). This point can often be renegotiated, as termination agreements frequently allow flexibility regarding the exact return date of laptops, phones, or other company equipment.

Do not rely on verbal promises from your supervisor (e.g., “You can keep the phone for now”). Such promises are difficult to prove and many contracts require text or written form; otherwise, verbal agreements are ineffective. Always have such confirmations documented, at least via email.

Return obligations during extraordinary termination

In the case of an extraordinary or summary dismissal, the employment relationship ends immediately. Company property must therefore be returned upon issuance of the summary termination.

Return obligations during an unfair dismissal claim

If an employee files an unfair dismissal claim against an ordinary or extraordinary termination, company property must still be returned at the end of the notice period, upon release, or according to any otherwise agreed rules. Employees cannot continue using company property until the conclusion of an unfair dismissal lawsuit.

Options to retain or purchase company devices

Employees may negotiate to keep mobile phones or laptops after leaving, particularly during severance or termination agreement negotiations. Common options include:

• Severance agreements: Devices can be included as part of a severance package or additional benefit. Their value is usually deducted from the severance payment.
• Purchase options: Employers may offer the chance to buy used devices at a discounted price.
• Contract clauses: Rare employment contracts may allow permanent retention of devices, but this is exceptional and depends on negotiation and device value.

Rights against unlawful device recall

If an employer demands early return of devices without legal basis:

• Continued usage rights: Employees can continue using privately-used devices during the notice period if covered by contract agreements.
• Revocation clauses: Early revocation clauses are enforceable only under strict conditions and should be reviewed by a specialist lawyer.
• Compensation: Employees may claim damages if an employer unlawfully enforces device return.

Data backup and deletion

Employees using devices for private and work purposes should:

• Backup personal data immediately upon notice of termination.
• Request reasonable time for data backup if terminated without notice.
• Be cautious when performing a factory reset to avoid deleting company data unlawfully, which could create liability.

Frequently asked questions (FAQ)

1. Landesarbeitsgericht Köln – Court decision on revocation of company equipment usage ↩︎