Buddy says: It is important that before taking any action, you review the employee’s contract to see if there is a return of company property clause. 

In particular, you should be looking to see if there is a clause in his contract which allows the company to make deductions from his final salary payment in the event that the property is not returned.

Employer Information: It is important to be aware that it is only possible to make a deduction from an employee’s salary to cover the costs of such outstanding property if: -

• There is a specific clause in the employee’s contract which permits the company to do so in these circumstances; or
• The individual employee has signed a written agreement signifying his / her consent to the deduction. 

The relevant clause must be drafted in such a way that it represents a genuine pre-estimate of the loss the company is likely to suffer as a result of the failure to return the property.  In other words, the clause must not act as a penalty against the employee as such clauses are unenforceable. 

In the absence of an appropriately drafted clause or agreement by the employee, the company can make a claim to the county court for trespass to goods.  If there is a clause, but this does not permit deductions to be made from the individual’s salary, the company’s recourse is to the County Court and an action for breach of contract and/or trespass to goods.  The value of the goods is unlikely to justify bringing the claim in the High Court

If a company is considering taking action in the County Court, it is advisable to write to the employee first demanding the return of the property within a given time, failing which the company will issue proceedings without further notice.  This is often a sufficient threat to trigger the return of the outstanding property.