HT1212 I have an iphone from a previous employee that is locked with a passcode and I need to wipe the phone so I can issue it to another employee...how do I go about this?

I have an iphone that was previously used by a former employee, the phone is locked with a passcode, I need to factory reset so I can issue the phone to a new employee, how do I go about this?

http://support.apple.com/kb/HT1808
Here you go however do be warned that if activation lock is on the device you will need to contact apple support

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