Can the employer require me to compensate for unreturned PPE upon termination of employment?

Yes.

Upon termination of employment or termination of an agreement on work performed outside the employment relationship, the employee is obliged to return the used PPE. Your employer may ask you for financial compensation if you do not return the PPE or if it is excessively damaged (beyond what is reasonable given its period of use). You can agree with the employer to purchase the PPE at its remaining value.