They typed "AGREE" to the policy on day one when they were hired. IT is 2000 miles away. No one from IT is going to visit their office. They are going to wipe the device per corporate policy.
They have the right to do that, perhaps, but it's still not very nice.
People don't do good work when their employer is mean to them, regardless of what they signed. What is your "destroying potentially confidential data" is their "leaving to improve your competitor's product while you spend nine months trying to find a replacement".
