<Company Name>
Core HR Policy
Employee Business Expense
Reimbursement Policy
Policy Effective Date: <DD/MM/YY>
No part of this documentation may be reproduced or transmitted in any form or by any means, electronic
or mechanical, including photocopying or recording, for any purpose without express written permission of
the CEO of <Company Name Here>.
© 2021, <Company Name Here>. All Rights Reserved
Revision History
Ver Change Description Prepared By Reviewed By Approved By Date
No.
Table Of Contents
1. Objective 3
2. Scope and Applicability 4
3. Definition/Glossary 4
4. Policy/Process 4
4.1. Approval 4
4.2.Travel Booking: 5
4.3. Local Travel: 5
4.4. Travel Cancellation: 5
4.5. Mode of Transport - Outstation: 5
4.6. Lodging: 5
4.7. Outstation Travel Allowance: 6
4.8.Submission and Settlement of Tour Claim: 6
4.9.GENERAL: 6
5. Special Circumstance and Exception 6
6. Non-compliance and Consequence 7
1.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.
2.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>
3.Definition/Glossary
Term / Abbreviation Definition / Expansion
4.Policy/Process
4.1. 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 the prior approval is not required. Likewise, any
such unavoidable business expenses like client entertainment or purchases must
be pre-approved by the <Reporting Manager>
4.2.Travel Booking:
Post the approval, employees need to organize for 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.
4.3. 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 the
employee is using their own means of transport then, Rs……/km for Car and
Rs…../km for two‐ wheelers will be paid as conveyance reimbursements.
4.4. Travel Cancellation:
If there is re‐scheduling of the visit (extension / advancement), the employees shall
ensure the tickets are properly cancelled to minimize cancellation charges and
reschedule the booking.
4.5. 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)
4.6. 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.
4.7. 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)
4.8.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.
4.9.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 employee is taking 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 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.
5.Special Circumstance and Exception
Any Deviation to this policy has to be approved by HR. Any changes to the policy
has to be approved by the Finance Department.
6.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.
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