Can this agreement be signed electronically?

Yes. Electronic signatures are enforceable under the ESIGN Act (15 U.S.C. §7001) and UETA where adopted, provided intent, consent, attribution, and record retention requirements are met.

Is notarization required for validity?

Not typically for a routine usage agreement, but specific states or clauses (e.g., deeds or powers) may require notarization; verify state rules before relying on a notary requirement.

What happens if an employee doesn't return materials?

The agreement should specify remedies—reimbursement, payroll deduction (if lawful), or collection actions. Follow internal policies and applicable wage deduction laws before withholding pay.

Do I need a BAA for devices with PHI?

Yes. If devices or materials contain protected health information, include a Business Associate Agreement and HIPAA safeguards to limit regulatory risk.

How long must I keep signed agreements?

Retain agreements for the active term plus a period aligned with industry regs: at least 3 years generally, 6 years for HIPAA-related materials, and longer where state law requires.

Can terms be amended after signing?

Yes, by mutual written amendment signed by both parties. Document amendments clearly and retain prior versions for audit and dispute purposes.

Electronic Signature
Templates
HR
Employee Material Usage Agreement

Employee Material Usage Agreement

This template is fully customizable. Edit the text, fill out the fields, and send it for signature. Give it a try!

Employee Material Usage Agreement

Personal Information

Full Legal Name Address Phone Email

Position Information

Job Title Department Reporting Manager

Start Date:

Salary (annual)

Employment History (most recent first)

Employer 1 — Company Name Primary Responsibilities Reason for Leaving Employer 2 — Company Name Primary Responsibilities Reason for Leaving

Education

Degree Institution Major/Field

Graduation Date:

Professional References

Reference 1 — Name Reference 2 — Name Reference 3 — Name

Assigned Materials and Access

The Company hereby documents the materials and system access assigned to Employee. Employee acknowledges receipt and responsibility for the condition and security of each item listed below.

Item 1 — Description Item 2 — Description Item 3 — Description

System access granted (check all that apply): Company email Network drive Confidential records systems

Material Use, Security, and Return Obligations

1. Ownership and Title. Employee acknowledges that all physical materials, electronic devices, keys, access credentials, and copies of Company information provided under this Agreement remain the sole property of the Company. No right, title, or interest in Company materials is transferred to Employee except for temporary use as required for performance of duties.

2. Permitted Use. Materials and system access are provided solely for performance of Employee's job functions. Limited personal use is permitted only if expressly authorized in writing by the Company and must not interfere with security, confidentiality, or business operations.

3. Prohibited Conduct. Employee may not (a) copy, transfer, or remove Company materials offsite without written authorization; (b) disclose confidential or proprietary information to third parties; (c) circumvent technical security controls; (d) install unauthorized software or hardware on Company equipment; or (e) use Company materials in violation of law or Company policy.

4. Security and Care. Employee will exercise reasonable care to prevent loss, theft, damage, or unauthorized access to Company materials, including use of passwords, encryption where required, and physical protection of devices. Employee will promptly report loss, theft, or suspected compromise to the Company's security contact.

5. Return of Materials. Upon termination of employment or upon request by the Company, Employee shall return all materials, credentials, copies, and access privileges immediately. Employee agrees that the Company may disable access and remotely wipe Company data from devices where permitted by law.

6. Intellectual Property. Employee agrees that all work product, inventions, designs, and data produced or developed using Company materials or within the scope of employment are the exclusive property of the Company to the extent permitted by law. Employee will disclose such work product to the Company and execute documents necessary to effect assignment.

7. Remedies; Indemnity. Employee acknowledges that violation of this Agreement may cause irreparable harm. The Company may seek injunctive relief, recovery of costs, and damages. Employee agrees to indemnify the Company for losses resulting from Employee's negligent or willful misuse of Company materials.

8. Compliance with Policies and Law. Employee shall comply with all applicable Company policies, procedures, and applicable laws relating to privacy, data protection, export controls, and confidentiality. Violations may result in discipline up to and including termination.

Legal Disclosures and Authorizations

At-Will Employment Statement: Employee understands that employment remains at-will unless otherwise agreed in a separate written agreement signed by an authorized representative of the Company.

Equal Opportunity Statement: The Company provides equal employment opportunities without regard to protected characteristics and will make reasonable accommodations in compliance with applicable law.

Authorization to Contact and Background Checks: Employee hereby authorizes the Company and its agents to contact prior employers and references and to obtain background and security checks as necessary for employment and safeguarding Company materials.

Consent to Background Check: I consent to a background and security check.

Authorization to Contact Previous Employers: I authorize contact with prior employers and references.

Employee Certification and Agreement

I certify that the information provided in this Agreement and accompanying records is true and complete. I acknowledge receipt of the materials listed above and agree to comply with this Agreement, applicable Company policies, and all legal requirements governing the use, protection, and return of Company materials. I understand that violation of this Agreement may result in disciplinary action up to and including termination and legal action.

Additional Comments (optional)

By signing below, Employee and Employer confirm acceptance of the terms set forth in this Employee Material Usage Agreement.

Employee — Print Name:

By:

Date:

Employer — Company Representative (Print):

By:

Date:

What an Employee Material Usage Agreement Is and Why It Matters

An Employee Material Usage Agreement is a written contract that defines how an employee may use, access, store, and return employer-owned materials, equipment, or information. It typically covers physical items (tools, devices, keys), intellectual property (drafts, designs, source code), and confidential materials (customer lists, trade secrets). The agreement sets permitted uses, custody and care obligations, reporting duties for loss or damage, and post-employment return requirements. It also explains disciplinary or financial consequences for misuse and establishes the employer's right to inspect, track, or retrieve materials to protect business operations and legal interests.

Why organizations use this agreement

A clear Employee Material Usage Agreement reduces disputes over property, protects trade secrets and client information, and documents responsibilities for care, return, and liability.

Who typically completes and signs this agreement

Employers, HR teams, equipment managers, and hiring managers usually prepare or issue the agreement at hire or when materials are assigned.

Human resources: issues agreements during onboarding and tracks signed copies centrally.
IT and facilities: assign devices and verify return, maintenance, and inventory status.
Managers / supervisors: authorize material use and confirm condition on assignment and return.

Employees, contractors with device access, and department heads who control assets are common signers; legal or procurement review may be required for sensitive assets.

Step-by-step: filling out and issuing the agreement

Follow these sequential steps to prepare, review, and secure signatures for the agreement.

01

Prepare Template: Populate company name, standard clauses, and material list before assignment.
02

Detail Items: List each item with identifiers and condition notes to avoid ambiguity.
03

Review and Approve: Have HR or legal review terms for compliance and liability allocation.
04

Obtain Signatures: Collect employee signature and dated acceptance; retain copy for records.

Core clauses to include for clarity and enforceability

A professional agreement covers responsibilities, permitted use, return conditions, liability, monitoring, and dispute resolution to reduce operational and legal risks.

Permitted Use

Describe acceptable activities, location limits, and whether personal use is allowed or prohibited to limit employer exposure.

Care and Maintenance

State employee duties to maintain, secure, and protect materials, including required protective measures and reporting of damage.

Return and Inspection

Specify return procedure, timelines, and employer inspection rights for condition verification and data sanitization.

Loss and Liability

Allocate responsibility for loss or damage and explain reimbursement, deductions, or disciplinary measures.

Confidentiality

If materials contain confidential information, include nondisclosure language and data-handling requirements to meet privacy obligations.

Governing Law

Identify the state law governing disputes and how notices must be delivered for enforceability.

Security and compliance considerations to note in the agreement

Data Encryption: TLS 1.2/1.3 in transit; AES-256 at rest

HIPAA: Include BAA when handling protected health information

Access Controls: Specify authentication and authorization expectations

Audit Trail: Document inventory actions and access events

Device Wiping: Define procedures for secure data erasure on return

Incident Reporting: Set timeframes and contacts for security incidents

Consequences and legal risks of improper use or missing details

Financial Liability: Employee may owe repair or replacement costs

Disciplinary Action: Policy violations can lead to termination

Regulatory Exposure: Unauthorized PHI access may trigger HIPAA penalties

Tax Withholding: Employer deductions for replacement could trigger payroll issues

Evidence Gaps: Vague descriptions reduce enforceability in disputes

Criminal Liability: Theft or data exfiltration may lead to prosecution

Common errors that create problems

Using vague item descriptions that lack serial numbers or model details, which makes post-loss attribution difficult and complicates claims.
Failing to specify return triggers (termination, role change, or scheduled audit), resulting in delays and recovery disputes between employer and departing employees.
Omitting data-handling steps for devices containing confidential information, which raises regulatory and remediation costs if data is exposed or transferred incorrectly.
Not specifying who pays for repairs or replacements and how costs are calculated, causing inconsistent enforcement and morale issues.

How the agreement is used in routine workflows

This typical workflow describes how materials are requested, recorded, issued, returned, and audited during employment lifecycle.

Request and Approval: Employee requests materials; manager approves and documents purpose.
Asset Assignment: IT/facilities record serial numbers and load agreement into personnel file.
Use Period: Employee uses materials subject to care and confidentiality clauses.
Return and Audit: On return, condition is recorded; data wiped when required.

Configuring digital workflows for issuing and signing

Common digital settings streamline issuance, signature capture, and inventory updates when using an eSignature platform.

Field	Configuration
Asset List	Populate repeatable table with serial, model, and condition
Signature Required	Employee signature and date mandatory before issuance
Notification	Email to HR and manager when signed
Inventory Update	Automatic asset check-in/out on signature completion

Technical and platform considerations for e-signing and recordkeeping

Ensure platform logs timestamps, signer attribution, and retention settings to meet legal and internal recordkeeping requirements.

Document Formats: PDF, DOCX, and searchable exports
Integrations: CRM/HR systems and cloud storage connectors
Authentication: Email, SMS, or stronger multi-factor options

Key dates and timing expectations to include

Set explicit dates and intervals to eliminate ambiguity and ensure timely returns, audits, and maintenance.

Assignment Date:

The date materials are issued and agreement begins

Scheduled Audit:

Periodic inventory checks (quarterly or annual) to verify condition

Return on Termination:

Materials must be returned on or before last employment day

Damage Notification:

Report loss or damage within 48–72 hours of incident

Record Retention:

Retain executed agreement per retention policy and legal requirements

Sample eSignature vendor comparison for executing the agreement

Common vendor features and starting prices for executing and storing Employee Material Usage Agreements; signNow appears first for column alignment.

	signNow	DocuSign	Adobe Sign	PandaDoc	HelloSign
Starting Price	$8/user/mo	$15/user/mo	$14/user/mo	$19/user/mo	$15/user/mo
Free Trial	7-day free trial	No	No	Yes, limited	Yes, limited
Bulk Send	Yes	Yes	Yes	Yes	No
Audit Trail	Yes	Yes	Yes	Yes	Yes
HIPAA Compliant	Yes	Yes	Yes	No	No

Frequently asked questions about execution and enforcement

Answers to common questions on signatures, enforceability, returns, and practical enforcement steps for employers and employees.

Need help? Contact support

Can this agreement be signed electronically?
Yes. Electronic signatures are enforceable under the ESIGN Act (15 U.S.C. §7001) and UETA where adopted, provided intent, consent, attribution, and record retention requirements are met.
Is notarization required for validity?
Not typically for a routine usage agreement, but specific states or clauses (e.g., deeds or powers) may require notarization; verify state rules before relying on a notary requirement.
What happens if an employee doesn't return materials?
The agreement should specify remedies—reimbursement, payroll deduction (if lawful), or collection actions. Follow internal policies and applicable wage deduction laws before withholding pay.
Do I need a BAA for devices with PHI?
Yes. If devices or materials contain protected health information, include a Business Associate Agreement and HIPAA safeguards to limit regulatory risk.
How long must I keep signed agreements?
Retain agreements for the active term plus a period aligned with industry regs: at least 3 years generally, 6 years for HIPAA-related materials, and longer where state law requires.
Can terms be amended after signing?
Yes, by mutual written amendment signed by both parties. Document amendments clearly and retain prior versions for audit and dispute purposes.

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