My company recently hired on an employee. We are a software company and he insisted on getting to work right away before he even signed his contract. After completing the work, he then proceeded to immediately quit and refuses to hand over his work that was clearly intended for the company. In legal terms, who is correct here? I don't want to make a big deal if the company is at fault here, but I don't know who owns the work in this situation.
First, I agree with LdiJ. You will need to go over all facts with an attorney in your area - whatever area that might be. You did not mention the name of your state or if you are even residing in the US.
If you are in the US, the person who creates a work is generally considered the holder of all rights in the work
absent any agreement to the contrary. If the person worked for you under an employment contract and the work he performed was part of his duties under the contract, then what was created would generally be considered a "work made for hire" and the company would hold all rights in the work created rather than the employee.
Without an employment contract or any other written and signed agreement with the employee, however, arguing work-for-hire could be difficult. Your company was remiss in having the employee start work without a signed agreement in place.