Start with a written demand that refers to the asset policy the employee signed, and keep evidence that the laptop was issued and not returned. Lock the device and revoke access. If it still isn't returned, send a legal notice, then consider a civil recovery claim and, where there is dishonest intent, a police complaint for criminal breach of trust.
What should a company do, step by step?
- Collect the evidence: the asset handover form with the serial number, the signed laptop policy, exit emails and any reminders sent.
- Secure the data: lock or wipe the device remotely through your device-management tool and revoke the employee's access to email, VPN and company systems.
- Send a written demand giving a clear return date and a way to return it, such as a courier pickup.
- Send a legal notice through an advocate if the demand is ignored.
- Escalate: a civil claim to recover the laptop or its value, and, where the facts show dishonest intent, a police complaint.
Is keeping a company laptop a crime?
It can be. Dishonestly keeping property entrusted to you can amount to criminal breach of trust under Section 316 of the Bharatiya Nyaya Sanhita, 2023 (formerly Section 406 of the IPC). A simple delay, or a genuine dispute over unpaid dues, is usually treated as a civil matter. An advocate can tell you which route fits your facts.
Can we withhold the full and final settlement?
Many companies make clearance of the final settlement conditional on returning company assets. Withholding wages already earned, or deducting from them, is restricted by wage laws and should be done only as your employment contract and the law allow. Take advice before deducting.
What about the company data on the laptop?
Treat it as a possible data incident. Record what data and systems the laptop could reach. Under the Digital Personal Data Protection Act, 2023, organisations must protect personal data they hold. CERT-In's 2022 directions require certain cyber incidents to be reported within six hours, so check whether yours is one of them.
How do we stop this happening again?
- A signed laptop and BYOD policy for every employee
- An asset register with serial numbers
- An exit checklist that collects devices on the last working day
- Device management that can lock or wipe remotely
Our company packages set up all four and run recoveries for you.
Sources
- Bharatiya Nyaya Sanhita, 2023 — India Code
- Digital Personal Data Protection Act, 2023 — India Code
- CERT-In directions under Section 70B(6) of the IT Act, April 2022
Last reviewed 2 November 2026. This guide is general information, not legal advice. See our editorial policy.