Company mobile phone and laptop after termination – do you have to return them?

After a termination, many employees ask themselves: Can I keep my company mobile phone or laptop? During the notice period and a leave of absence, private use is often allowed because these devices are considered part of the compensation. However, they usually have to be returned at the end of the employment relationship. Are there any exceptions? Can you negotiate to keep the devices? Here you can read about the most important points regarding the return of company mobile phones and laptops and what your options are.

The most important information at a glance:

• Use during the notice period: Work equipment such as laptops and company mobile phones that have been approved for private use may generally continue to be used until the end of the notice period.
• Return obligation: After the end of the employment relationship, there is normally an obligation to return the equipment, unless there are special agreements such as a transfer of ownership.
• Negotiation options: Taking over the equipment can be discussed as part of severance negotiations or as a purchase option.
• Cancellation clauses: Be aware of possible cancellation clauses, check their effectiveness and seek legal advice if anything is unclear.

When do I have to return my smartphone and laptop after I resign?

If you were allowed to use your work equipment such as a laptop or company mobile phone for private purposes, these are often indispensable companions. But what happens to these devices if you are dismissed? The obligation to return them depends on various factors and in particular on the contract clauses.

And what happens to my company car after termination?

General information on the obligation to return equipment

The key factors to bear in mind are:

• Type of use: Was the equipment used exclusively for work or was private use also allowed?
• Period of time: Is the return relevant during the notice period, during leave of absence or after the end of the employment relationship?
• Contractual provisions: Are there clauses in the employment contract or other agreements regarding work equipment, in particular regarding revocation, leave of absence or purchase options?

Special cases

• Transfer of ownership: Work equipment such as a company mobile phone or laptop does not have to be returned after a termination if it has been officially transferred to the employee. This means that they have become the property of the employee. However, this is rarely the case and requires an explicit regulation. If there is no such clause in the employment contract or in another written agreement, the employer remains the owner and the return is required at the end of the employment relationship.
• Tax-free provision: Many employees receive equipment as part of a tax-free provision. Often, this equipment can also be used for 100% private purposes. The advantage of this is that no taxes are due on this equipment; however, ownership remains with the employer. Therefore, this equipment usually also has to be returned at the end of the employment relationship. It is advisable to read the corresponding contract carefully.

Important: Be careful with verbal agreements! Unfortunately, statements by employers that you may keep equipment free of charge often have no legal basis. Most employment contracts require the written form for additional regulations. In addition, it is difficult to prove verbal promises in case of doubt.

Computers and mobile phones for business use only

If you have been given work equipment such as a company mobile phone or laptop for business purposes only, you are obliged to return it when you finish working. If your resignation means that you are released from your duties, the employer generally has the right to reclaim the equipment immediately, since it is no longer needed to fulfil your tasks. It is therefore important to carefully review your employment contract and any relevant agreements to ensure that you are aware of any return policies.

Private use of a company mobile phone and laptop

If you have been given a company mobile phone for private use, your employer cannot simply reclaim it after you have handed in your notice, even during the notice period or while you are on garden leave. Here too, you should consider contractual cancellation clauses. Nevertheless, you must return the device at the latest by the end of your employment relationship, unless a purchase option or a severance package has been agreed.

Company mobile phone and laptop after the end of the employment contract

Regardless of whether you were also allowed to use the company mobile phone for private purposes, it remains the property of the employer and must therefore be returned at the end of the contract. Nevertheless, there is room for negotiation, especially with regard to severance payments or purchase options for the company mobile phone. We will be happy to provide you with more information on this below.

Work equipment during the action for unfair dismissal

During an action for unfair dismissal, it is important to know that employees must initially return the work equipment provided to them, such as a company mobile phone or laptop, at the end of the notice period. If the action for unfair dismissal is successful and the employment relationship is deemed to continue with retroactive effect, the employee is not only entitled to the lost salary, but also to the use of contractually guaranteed additional benefits. If you were deprived of your mobile phone or laptop during the termination phase, you are also entitled to compensation for the lost monetary benefit.

What can I do if I want to keep my work mobile phone or laptop?

Many employees want to keep their work mobile phone or laptop after their employment relationship has ended. In some cases, employers are willing to do so. This may be the case in particular in termination agreements or during negotiations for severance pay. We have put together some common ways for employees to achieve such agreements:

1. Severance negotiations: When negotiating a severance package, it is possible to agree with the employer that certain work equipment such as laptops or mobile phones may be kept after termination. These devices can be considered part of the severance package or as an additional benefit. Typically, the value of these devices is added to the severance package.
2. Purchase options: Employers often offer their employees the option to purchase work equipment at a reduced price after the employment relationship ends. This particularly applies to older equipment whose value to the employer has decreased, such as used laptops or mobile phones.
3. Clause in the employment contract: In rare cases, employment contracts contain clauses that allow employees to keep specific work equipment after termination. However, such arrangements are extremely rare and depend heavily on negotiations and the value of the equipment in question.

If you are planning to keep your company mobile phone or laptop after termination, it is therefore advisable to talk to your employer early on and communicate your wishes clearly. Good preparation and knowing your negotiating options can help you achieve the best results for your situation. If you are unsure or need legal support, don’t hesitate to get help!

Rights of employees in the event of unjustified reclaiming of work equipment

If your employer prematurely and unlawfully reclaims work equipment such as company mobile phones or laptops after termination, you should know that you have rights to protect yourself in this situation:

1. Right to continued use: As already mentioned, the employer is not generally allowed to demand the return of privately used work equipment during the notice period or in the event of suspension without a contractual basis. This work equipment is considered a non-cash benefit that you may continue to use until the end of your employment.
2. Revocation clause: Many employment contracts have clauses that regulate the premature termination of the private use of work equipment. It is important to note that such revocation clauses are only effective under strict conditions and should therefore be checked by a specialised lawyer. General clauses that allow the employer to enforce the return without substantive reason are often ineffective.
3. Compensation for damages: If your employer nevertheless unlawfully insists on the return of work equipment and enforces this, you have the right to claim compensation for damages.

Overall, it is therefore advisable to carefully check your employment contract for clauses on revocation and return conditions. In the event of an unjustified reclaim, you should seek legal advice in good time. Please note that in such cases, the employer can also be held liable for any damages incurred.

Data backup and deletion on work mobile phones and laptops

If you use your smartphone or laptop for both private and work purposes, it is important to bear in mind a few points regarding the data stored on them:

1. Early data backup: As soon as you know you are leaving, you should immediately back up your personal data and delete it from the device. This minimises the risk of important personal information being lost.
2. Request a reasonable period of time: If you are terminating your contract without notice, it is advisable to ask your employer for a reasonable period of time to back up your data. This will give you enough time to take all the necessary steps.
3. Be careful when resetting to factory settings: Resetting your device to factory settings should be done with caution. Be aware that deleting company data may have consequences.

FAQ: about returning your company mobile phone when you leave

Do I have to return my company mobile phone and laptop immediately when I leave?

If these devices were used for business purposes only, they usually have to be returned immediately. However, if private use was allowed, you are usually allowed to continue using your laptop and work mobile phone until the end of the notice period. It is worth checking your employment contract for clauses regarding use during the notice period.

Can I keep my work mobile phone or laptop after I quit?

Normally, these devices have to be returned, as they remain the property of the employer. In some cases, however, you can negotiate a takeover, for example as part of a severance package or by means of a purchase option. It may therefore be useful to talk to your employer about a purchase agreement, especially for privately used devices.

Can the employer revoke the private use of the company mobile phone or laptop prematurely?

Only under certain conditions. A revocation clause must contain specific reasons. General formulations that allow the employer to reclaim the device unilaterally without an objective reason are usually invalid.

What happens if my employer demands the return of the company mobile phone or laptop prematurely?

If there is no contractual basis for an early reclaim and you were allowed to use the equipment privately, you can claim compensation for the lost private use value. A legal review of your employment contract can help you to enforce your rights.

Can I negotiate the purchase of a company mobile phone and laptop after termination?

Yes, under certain circumstances. It is possible to negotiate the purchase of the devices as part of a severance package or termination agreement. The purchase price is then often credited against the severance payment.

Do I have to delete data on the company mobile phone or laptop before returning it?

If you use your company phone or laptop for private purposes, it is advisable to back up your personal data in good time. However, you should only reset the device to factory settings in consultation with your employer to ensure that no sensitive company data is lost or unintentionally deleted.

Do I have to pay tax on my company mobile phone or laptop?

Generally not. This is because companies have the option of providing their employees with IT equipment tax-free. This includes smartphones, computers, tablets and laptops (as well as printers, chargers, routers, software, etc.). It does not matter whether employees use these devices for work purposes. Even if the devices are used exclusively for private purposes, there is no taxable non-cash benefit – even if the employer bears the monthly costs for telephone and internet!

If you are leaving your job, our gross-net severance pay calculator (Severance Pay) can help you to get an overview of the tax consequences of your own ‘severance package’. For more information on the taxation of severance pay, see our 10 tips on how to save taxes on severance.