Employee Expense Reimbursement Policy

Travel and business expense policies are an exclusive set of rules and guidelines created by companies to define modes of travel by employees for business purposes as well as maximum caps of spend on work-related expenses. This Policy describes the types of expenditure reimbursable to employees and the process for an employee to submit the claim and obtain such reimbursements. This policy template is available for download in Word format.

With this Employee Expense Reimbursement policy template you can:

• Set up the travel requisition process
• Outline level-wise eligibility for travel and stay
• Detail out the approval process
• Define the claim submission process

In just a few minutes, you will be able to set up a policy that covers most of the necessary information required.

This policy covers rules to be followed with respect to:

• Planning and booking travel and stay as eligible
• Planning entertainment as eligible
• Guidelines for local conveyance
• Guidelines for claim submission and documentation and lots more…

Employee Business Expense Reimbursement Policy

Objective

This policy is to ensure that employees of < Company Name > are fully reimbursed any expenses incurred by them towards official travel or while participating in business deals. The objective is to provide a common guidance for employees across levels as well as to administrators in < Company Name here > for conducting a smooth process.

Scope and Applicability

This policy is applicable across all designations and divisions of < Company Name here >. This policy is owned by < Name of the Person > and reachable @ < Contact Number > and < email address >

Policy/Process

Approval

When an Employee needs to travel out of station, it is encouraged to apply for a travel budget approval from the < Reporting Manager > at least a week prior to the scheduled travel. A request-for-approval mail with the filled-in form has to be sent to the < Reporting Officer >. In case, the < Reporting Officer > is unavailable, then the request for approval mail should be sent to the < Reviewing Officer >. For local travel inside the same city limit, prior approval is not required. Likewise, any such unavoidable business expenses like client entertainment or purchases must be pre-approved by the < Reporting Manager >

Travel Booking

Post the approval, employees need to organise all the logistics like ticket (Air / Rail / Bus) and hotel booking, etc., themselves or get in touch with your internal travel desk(as applicable) or Admin for support.

Local Travel

Employees should travel in public transport as much as possible for all local conveyance or pre‐paid taxi/ autorikshaws and produce bills for the same. If an employee is using personal transport, then Rs……/km for Car and Rs…../km for two‐wheelers will be paid as conveyance reimbursements.

Travel Cancellation

If there is rescheduling of the visit (extension / advancement), the employees shall ensure the tickets are properly cancelled to minimise cancellation charges and reschedule the booking.

Mode of Transport - Outstation

All the outstation Travel should be by rail or road. However, if the travel distance is beyond 400 Kms, the mode of travel would be by Air.

Eligibility criteria for mode of transport

Within 400 KMs –

• Rail (III A/C) or Road – Managers / Executives
• Rail (II A/c) or Road – Senior Managers

Beyond 400 KMs –

• Flight (Economy Class)

Lodging

Occupancy for any kind of outstation travel for official purpose would be

• 3 Star equivalent hotel for Managers / Executives
• 4 Star equivalent hotel for Senior Managers and above available within the city limits.

Outstation Travel Allowance

Per Diem for Domestic Travel (Includes expense towards food and incidental expenses, bills not required)

Tier 1 Cities: NCR, Mumbai, Pune, Bangalore, Chennai & Hyderabad) @Rs…………/ Day (If lodging is borne by the employee) @Rs……….. / Day (If lodging is provided by Company)

Tier 2 Cities‐ Rest of the cities in India: @Rs…………/ Day (If lodging is borne by the employee) @Rs……….. / Day (If lodging is provided by Company)

Submission and Settlement of Tour Claim

The employee, on completion of travel, shall submit the Travel Claim Statement in the prescribed format post approval from < Reporting Officer> to the Finance Department within …… business days from the completion of travel. This is required for timely accounting of expenses. Upon submission of travel claim along with supporting documents, the Finance team will settle claims within ….. business days.

GENERAL

• Any expenses on liquor cannot be claimed
• Food cost is already included in the daily allowance
• Employees can claim laundry charges if stay is more than 3 days
• If an employee is taking a client out for lunch or dinner, the same can be claimed after submitting the bill in original but only upon prior approval from < Reporting Officer >
• If the company is not providing mobile/internet facility to employees, then they can claim phone and internet charges @ Rs.< … > per day.
• In case a group of employees are traveling locally, they shall ensure that wherever feasible, they travel together, and one person shall incur and claim for the entire group.

Special Circumstance and Exception

Any Deviation from this policy has to be approved by HR. Any change to the policy has to be approved by the Finance Department.

Non-compliance and Consequence

Any non-compliance to the policy will lead to financial or accounting irregularities, and thereby to Audit exposure. Any willful or regular negligence by any employee leading to non-adherence to the policy will be strictly viewed in accordance with the Employee Code-of-Conduct policy, and action will be taken accordingly.