WHAT HAPPENDS IF A STARTUP FAILS TO PREPARE AN ASSET HANDOVER RECORD WHEN AN EMPLOYEE RESIGNS?

In many startups, the offboarding process is often overlooked due to the mindset of “we all know each other” or “we trust one another.” However, allowing an employee to leave without executing a formal Asset Handover Record for company equipment, assets, and data constitutes a significant governance weakness. Let us examine the legal and managerial risks of this situation through the analysis of M.A. Nguyễn Hữu Long.

#1. Case Summary

Company M, a technology startup, assigned a high-performance laptop to Mr. H, a sales employee who had worked for the company for one year.

When Mr. H submitted his resignation, the company was in the middle of an urgent project. To save time, the management allowed him to hand over his work through Zalo messages and permitted him to take the laptop home to “remove his personal data” before returning it.

After leaving the company, however, Mr. H failed to return the laptop, claiming that it had become “damaged.”

More importantly, because the company had never prepared a written Asset Handover Record or required a written Confidentiality Commitment, it lacked any legal basis to:

• hold Mr. H liable for the loss of company property;
• require him to return or permanently delete confidential customer data stored on the laptop; and
• establish ownership and control over the business data remaining on the device.

As a result, the company not only lost valuable equipment but also lost control over its critical business information.

#2. Legal Perspective – A Reliable Legal Shield

The management of company assets upon the termination of an employment relationship must comply with applicable labor laws.

Article 48 of the 2019 Labor Code – Responsibilities upon Termination of an Employment Contract

Article 48 provides that, within 14 working days from the termination date of an employment contract (extendable to 30 days in certain statutory circumstances), both the employer and the employee must fulfill all obligations relating to their respective rights and interests.

The employer is responsible for, among other things:

• settling all payments due to the employee;
• completing procedures relating to social insurance and unemployment insurance;
• returning all original documents retained from the employee; and
• providing copies of employment-related documents upon the employee’s request.

Article 129 of the 2019 Labor Code – Compensation for Damage

Article 129 stipulates that:

• An employee who damages tools, equipment, or other assets of the employer must compensate for such damage in accordance with the law or the employer’s internal labor regulations.
• An employee who loses equipment, company property, or other assets entrusted by the employer must compensate for part or all of the loss based on market value or the employer’s internal regulations.
• Where a Liability Agreement has been executed, compensation shall be determined in accordance with that agreement.
• Employees shall not be liable where the loss results from force majeure events such as natural disasters, fires, epidemics, wars, or other objectively unforeseeable and unavoidable circumstances despite all reasonable preventive measures having been taken.

Legal Risks

Without a duly signed Asset Handover Record, the employer lacks documentary evidence proving that the employee actually received and was responsible for the company’s property.

In the event of litigation, the company may face substantial difficulties in proving:

• the employee’s possession of the asset;
• the employee’s obligation to return it; and
• the employee’s liability for compensation.

Consequently, the absence of written evidence significantly weakens the employer’s legal position before the court.

#3. Psychological, Educational, and Management Perspective – The Human-Centered Approach

Risk Management Perspective

The absence of a formal asset handover procedure reflects a governance model driven by trust rather than institutional controls.

Professional startup governance requires standardized written procedures rather than informal arrangements.

Failure to conduct a formal handover exposes the business not only to the loss of tangible assets such as laptops and access cards but, more critically, to the loss of intangible assets, including:

• customer databases;
• confidential business information;
• trade secrets;
• project documentation; and
• proprietary digital assets.

These intangible assets are often far more valuable than the physical equipment itself.

Psychological Perspective

Many startup founders hesitate to require employees to sign handover documents because they fear it may appear as though they distrust departing employees.

In reality, this perception is misguided.

A formal handover record protects both parties:

• it safeguards the employer’s property rights; and
• it protects the employee from future allegations concerning missing equipment or confidential information that may not have been their responsibility.

A transparent and standardized offboarding procedure demonstrates professionalism, mutual respect, and organizational maturity.

#4. Comprehensive Solutions Recommended by Expert Nguyễn Hữu Long

To strengthen the employee exit process, M.A. Nguyễn Hữu Long recommends the following three-step framework.

Step 1 – Implement a Strict Offboarding Procedure

The final working day should follow a mandatory sequence:

Final Working Day → Asset Inventory → Execution of an Asset Handover Record signed by both parties → Revocation of all system and database access rights.

Payroll settlement and completion of employment termination procedures should only proceed after all handover obligations have been fully satisfied.

Step 2 – Digitalize Asset Management

When company equipment is initially assigned, the employer should maintain an Asset Register containing:

• detailed descriptions of each asset;
• identification numbers;
• condition reports; and
• the employee’s signed acknowledgment of receipt.

Upon resignation, the Asset Handover Record should specify:

• the physical condition of each device;
• installed software;
• company data returned;
• confidential information deleted; and
• confirmation of data transfer where applicable.

Step 3 – Build a Culture of Professional Offboarding

Asset handover should be regarded as a routine corporate procedure rather than an accusation of wrongdoing.

Employers should clearly communicate that these procedures exist to protect the legal interests of both the company and the departing employee.

When implemented appropriately, employees leave with dignity and confidence, while the company retains full protection over its assets and confidential information.

A strong company is not merely one that owns valuable assets—it is one that manages and safeguards those assets effectively.

Do not allow misplaced trust to undermine your company’s sustainable development.

EXPERT INSIGHT

This article is developed based on the professional consultation and legal expertise of M.A. Nguyễn Hữu Long, an expert in Leadership, Law, Psychology, and Education.

Through an interdisciplinary approach, we provide not only comprehensive legal protection but also integrated solutions in risk management and psychological support, contributing to the sustainable development of businesses and the wider community.

If you or your organization is facing similar legal issues concerning employment, corporate governance, land matters, or educational matters, please contact us via our hotline or submit your inquiries through our website tuvanphapluattamlygiaoduc.vn or call (+84) 898 627 762 for timely professional assistance.