In a hybrid world where employees may be on-premise or remote, managing equipment can be a balancing act. HR and IT teams must come together to coordinate how those devices get to employees’ hands while also setting expectations for their care and use.
An employee equipment agreement helps HR and IT teams set those expectations and outline clear steps for how company equipment should be used, and how employees should return the device when they leave the company.
This article will guide you through the necessary steps to create an employee equipment agreement for your company, including key sections and the benefits of having such a document.
Click on the image below to download our essential IT equipment templates, which include five documents that will help you manage your IT devices successfully.
A solid employee equipment agreement protects both the employer and the employee from liability if the worker leaves the company or is terminated. It also makes onboarding and offboarding easier as it lays out responsibilities and compliance conditions for remote employees, contractors, independent contractors, or in-office employees. Overall, this document should cover five key elements:
Ownership and liability: Your equipment agreement should clearly state that the equipment belongs to your company and what the employee’s responsibilities are regarding usage, care, and reporting of issues. Make sure to include details about the make and model of the device to which the agreement applies. The agreement should cover not only laptops but also other equipment such as monitors, keyboards, and mobile devices.
Usage and maintenance: The document must detail that the device should only be used for work-related purposes and outline steps for what employees should do in case of malfunctions, repairs or maintenance. Additionally, it can include who employees can contact to report issues.
Data security and privacy: Data breaches are expensive. That’s why your equipment agreement should include guidelines for how data should be stored and handled on company-owned devices. You should also mention security measures and protocols that you expect employees to follow.
Return and exit procedures: The agreement needs to set instructions for how the equipment must be returned when the employee departs your organization. There should be a clear process for what workers must do with their devices when they leave your company and the consequences of not returning company equipment.
Legal and acknowledgment: Your document should cover the legal framework governing the agreement, and include an acknowledgment section for the employee to sign, indicating they understand and accept the terms.
Anticipate unforeseen circumstances
When writing your employee equipment agreement, you want to cover all the unforeseen circumstances that may occur when employees handle your equipment. Include specific conditions that represent your laptop management and company values, so both your employees and yourself know what to expect if a device is damaged.
The most common way of anticipating those unforeseen circumstances is by holding the employee financially responsible for lost or damaged property if done purposely. Employees will be held financially responsible for any damage or loss of company equipment. However, each device should also come with insurance or a warranty for accidents or theft.
This way, the employee isn’t held accountable for events outside their control. For maintenance, the employee should be given remote access software so that the IT department can resolve any issues without the remote worker having to bring it to a physical location.
Outline usage instructions
The next conditions you want to stipulate are the actual use. If the device contains sensitive company or client data, it would make sense to stipulate in the agreement that it can only be used for work-related purposes. Personal use would be prohibited.
Be clear on consequences
Finally, you want to make very clear the consequences if a remote team member does not return the equipment after leaving the company. One way is to give the ex-employee the option to buy the device after it has been wiped clean.
Another option is withholding final compensation until the equipment has been returned. However, this can be a somewhat dicey legal situation, so we recommend delaying the final paycheck for a certain amount of weeks if the device is not returned on time.
The last point is to clearly state that failure to return equipment will be considered theft and may lead to criminal prosecution by the company.
If you have a remote employee who will not sign an agreement for equipment, you are really only left with two options:
The main purpose of having an employee equipment agreement is to protect your company’s resources. You can look at the benefits of this document from three angles:
It protects company equipment
Employee equipment agreements ensure that your equipment is handled carefully by stating usage guidelines, maintenance procedures, and return instructions. This way, there are fewer chances of machines getting damaged or lost because employees know exactly what they should (and shouldn't) do with the equipment from their first day.
It protects company data
Keeping company data safe is just as important as taking care of physical devices. Employee equipment agreements are great tools to minimize data security risks because they inform employees of your data security policies and warn them of installing unauthorized software. They also set expectations for reporting security incidents or suspicious activity.
It improves onboarding and offboarding
Usually, equipment agreements simplify the onboarding and offboarding processes as they set expectations for employees. New employees get a clear idea of their responsibilities with company equipment right away, and those leaving know exactly how to return their equipment.
I understand that:
By signing below, I acknowledge that I have reviewed each point of this agreement and agree to all the conditions above.
_____________________________
Employee Name
_____________________________
Employee Signature
_____________________________
Supervisor Signature
___________________
Date
| Item | Model | Serial Number | Initial Status |
| Macbook Pro | 13-inch, M1, 2021 | xxxxxxxxxxxx | Small scratch on cover |
GroWrk supports your onboarding and offboarding processes with seamless device setup across 150 countries. You can pre-select equipment and assign them to your current team or new hires. Employees can also choose their devices if you wish to give them options. In both cases, you can easily set up the process on the Dashboard and include an equipment agreement for your new hires to sign.
Our platform helps you manage your devices at every stage of their lifecycle. From IT procurement and shipping to maintenance and end of lifecycle, the GroWrk platform gives you real-time visibility into your device fleet, ensuring your teams have the tools they need regardless of location.
Schedule a call today to learn more about how GroWrk can help you with global IT device lifecycle management.