Looks as though it is sorted for now. Basically the owner upgraded their laptop transfered the license as they were going to donate the laptop. But the hired a new staff member and decided to let them have the old laptop so I mentioned that they need to check their licenses as they now have one extra device.
I had a look through the T & C for their desktop copies of Office, it states they are allowed to have one install on portable device per desktop license, checked with MS UK and they are covered for the laptop via their desktop license.