If you did either of the above you'd be on very shaky ground. Unless an employee has agreed to the deduction or it's in their contract then you can't do it.
www.acas.org.uk/deductions-from-pay-and-wages

Hi Mellissa, I faced a similar situation some years ago when an employee was put on garden leave. The organisation provided parking facilities which required a type of key fob to gain access, something quite expensive to replace and, inevitably, said employee hung onto it after they departed for garden leave. As their final payday approached I 'phoned a couple of times requesting return of said key fob, citing the expense of replacing it. To no avail. On the 3rd attempt I left a message to say I was calculating his final pay, was looking forward to the return of the item and really hoped to receive it since I really didn't want to have to deduct the replacement fee from their final pay. It mysteriously arrived the very next day. TBH I never intended to deduct the cost since that would put us on somewhat shaky ground, however the veiled threat seemed to do its' job. On a similar subject - at the same organisation we introduced a paragraph to the letter acknowledging the resignation, making clear that the return of organisation property was expected in order to receive final pay and P45. Where possible, we listed the expected items. Additionally - and, granted, this was some years ago - we started to issue the final pay in cheque form to ensure the outgoing employee couldn't be paid in spite of not returning the company property. Not sure if that's still possible ....

I too have successfully used the 'veiled threat' that Clare suggests

I have known of cases where a list of items an employee hasnt returned has been sent to the employee detailing the cost of said items, with a deadline to contact and if not they would be billed. It is usually clear to employees that the items belong to the company. If said letter is sent, I’d state that you’ll pay to arrange pick up.

Do you have a policy regarding company property? I’d share that too.

Aside from the excellent advice you've had already, then I'd also suggest two other possible additions.

1. I've turned up at an employee's house., knocked on the door and asked for the equipment to be returned. Now!!

2. Simply write, email or phone the person and tell them that if the property is not returned by XXXX, then you'll report it stolen. I believe this is stealing as stealing is an attempt to permanently keep something that is not yours.. (Thats not the exact wording but its along similiar lines)

Hi Mellissa,

Deducting from an employee's wages is legally permissible only in specific situations.

If an employee fails to return the equipment despite repeated requests, you can consider deducting the property's cost from their final salary, provided your employment contract includes a clause permitting such deductions or the employee has given prior written consent.

In cases where your employment contract lacks a deduction clause but includes a provision mandating the return of company equipment, you have the option to pursue a civil claim for breach of contract.

Making a deduction from the final pay without meeting these conditions may expose you to a potential claim of unlawful deduction of wages by the departing employee.

Chris

In reply to Chris:

Thanks Everyone!
All great advice.

I have already mentioned courier collection and that seems to have helped somewhat - lets see!

Hi Mellissa

I've previously told an employee their final pay will be via cheque which they will need to collect from the office... when they drop equipment off.

Alice

If we are talking about something like a computer then I would consider suspending their access to any systems, it is not just about the cost of some hardware, they presumably have access to company information. When/if you get the stuff back, I would check to make sure they have not been downloading anything or uploaded something horrible.

Of course, it all depends on what is meant by 'company property', if they have company secrets or list of customers then this is quite different to trying to get back a 10 year old keyboard and mouse with a value of £5.

If all reasonable attempts to secure the company fail then a typically strong letter from a solicitor might prove to be a powerful nudge, if this fails then it could be considered to be theft.

Hopefully, the employee will see the error of not communicating correctly and return everything without any fuss.

Yes, it's rarely legal to simply deduct the value of retained company property from owed salary and equally rarely is this practical. For a start, it's usually less the physical property than the intellectual property that one wants to recover. And in many cases, the amount of money owed may be more than the value of the physical property. That's before you even take into account that such deductions are only legal if you have a separate, signed agreement from the employee consenting to such deductions, which few employers have.

That said, the *threat* of a deduction can, indeed, have the required result, as can just arranging a courier to collect (with a clear list of everything expected). Threatening to report the equipment stolen always strikes me as a little childish unless you have made every reasonable effort to collect it to the point that the employee is actively conspiring to avoid returning the property.

But I have to endorse David Perry's first point. Few things are more effective than turning up on someone's doorstep, hand outstretched with an expectant look on your face. It may not be convenient or strictly cost-effective, but it does the job. More than once I have bought myself a one-way train ticket and a taxi out to an ex-employee's home, and driven home in the company vehicle they were refusing to return. It's understandable, really. "You're fired, oh, but would you mind doing a 400-mile round trip to bring us back your car/van/laptop?" Hardly surprising when the answer is "No, you can come and get it."

In reply to Mellissa:

Hi Mellissa . Hope you're finding this helpful. Some excellent responses already. Some previous threads below...

Employee has not returned company work phone - withholding wages - Feb 2022

 Ex-Employee - Return of Company Property/Money - Feb 2020

 Resignation and company property issues - Jan 2018

In reply to Steve Bridger:

Niiice! Thanks Steve