What to Include in an Employee Equipment Agreement

When you hand a $1,500 laptop to an employee, you probably don't sign anything. Maybe you mention "take care of it" and that's the extent of the agreement. For a team of 5, that works. At 15 or 20 people, the lack of a written agreement starts to create real problems.

An equipment agreement isn't about distrust. It's about clarity. Both sides know what the expectations are, what happens if something breaks, and what needs to come back when the employment ends.

Why You Need One

Without a written equipment agreement, you have no clear answer to:

• Who pays if the laptop screen cracks?
• Can the employee use the company phone for personal stuff?
• What happens to the equipment when they leave?
• Is the employee responsible for the charger, the case, and the adapters, or just the laptop itself?
• What's the timeline for returning equipment after the last day?

An equipment agreement answers all of these upfront, so nobody has an awkward conversation later.

What to Include

Keep it simple. A one-page document is better than a three-page one nobody reads. Here are the essential sections:

1. Equipment List

A specific list of what's being assigned. Not "a laptop" but "MacBook Pro 14-inch, serial number XXXXX, with charger and USB-C hub." If you're not already tracking employee equipment centrally, start there first.

Include all peripherals. The charger, the case, the adapter, the mouse. These are the things that most commonly don't come back.

2. Condition at Assignment

Note the condition when you hand it over: "New" or "Good condition, minor scuff on bottom left corner." This avoids disputes about pre-existing damage when the equipment is returned.

3. Acceptable Use

A brief note on what the equipment is for. Most companies allow reasonable personal use (checking personal email, streaming music during work). What you probably want to prohibit:

• Installing unauthorized software
• Disabling security features or antivirus
• Lending the equipment to others
• Using it for side businesses without permission

Keep this section short. Nobody reads a two-page acceptable use policy.

4. Care and Responsibility

Set expectations for how the equipment should be treated:

• Reasonable care (don't leave the laptop on the roof of your car)
• Report damage or loss promptly
• Don't attempt repairs yourself
• Keep the equipment physically secure (don't leave it unattended in public places)

5. What Happens When Something Breaks

This is where clarity matters most. Common approaches:

• Company covers all repairs: The simplest approach. Any damage, the company handles it. This is the most common policy for small teams.
• Negligence clause: Company covers normal wear and tear and accidental damage. Employee may be responsible for damage from negligence (e.g., spilling coffee while the laptop case was open, leaving equipment in an unlocked car).
• Deductible model: Employee pays first $X of repair costs. Less common and more likely to create resentment.

Whatever you choose, write it down. "We'll figure it out when it happens" is how you get inconsistent treatment and frustrated employees.

6. Return Requirements

The most important section. Unreturned equipment costs an average of $2,000 per departure, and most of that is preventable with clear return terms:

• All equipment must be returned by the last day of employment (or within X business days).
• Equipment must be returned in the same condition as assigned, minus normal wear and tear.
• All company data must remain on the device (don't wipe it before returning).
• All peripherals must be returned with the primary device.

For remote employees, include the return method: "A pre-paid shipping label will be provided. Equipment must be shipped within 5 business days of the last day."

7. Signatures and Date

Both the employee and a company representative sign and date the agreement. Keep a copy attached to the asset record.

Template Outline

Here's a minimal template structure you can adapt:

EQUIPMENT ASSIGNMENT AGREEMENT

Employee: ___________________
Date: ___________________

EQUIPMENT ASSIGNED:
[ ] _________________ (Serial #: _______) Condition: _______
[ ] _________________ (Serial #: _______) Condition: _______
[ ] _________________ (Serial #: _______) Condition: _______

TERMS:
- This equipment is company property assigned for work use.
- Reasonable personal use is permitted.
- Employee will take reasonable care of the equipment.
- Damage or loss must be reported to [manager/ops] promptly.
- All equipment must be returned on or before the last
  day of employment, including all peripherals.
- Remote employees: equipment must be shipped within
  5 business days using a company-provided shipping label.

Employee Signature: ___________________ Date: ___________
Company Representative: _______________ Date: ___________

When to Use It

• New hires: Sign as part of onboarding, when you hand over the equipment.
• New equipment: When you issue a new device to an existing employee, update the agreement or create a new one.
• Equipment swaps: When someone trades in a laptop for a newer one, the old agreement closes and a new one opens.

Keep It Connected to Your Tracking System

The agreement is only useful if it's attached to the asset record. When you look up a laptop, you should see who has it, the signed agreement, and the receipt. When someone leaves, the offboarding checklist should reference the agreement's equipment list.

AssetJay lets you attach documents to assets, so you can store the signed agreement alongside the receipt and warranty information. Everything about that asset is in one place.