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Policy No.

2012-13/GEN/009 April, 2012 Mr. Manoj Pincha

FIRE SOLUTION INDIA PVT. LTD.

Date of Issue Approved By

Subject -

TRAVEL REIMBURSMENT POLICY

1. Policy Purpose
This document ensures that employee travel is consistent with the business objectives of the FSIPL. It also ensures fair and equitable treatment of employees by defining procedures for authorized business travel and guidelines for expense reimbursement.

2. Overview:
A critical balance must be sought when requesting travel. This is the company's need for cost effectiveness and the employee's need for quality services and support. Employee travel should be via the lowest cost alternative, consistent with good business practices. Neither luxury, nor sub-standard modes of transportation and accommodations should be used. Employee travel and the expenses associated with it, will be authorized only in circumstances which are clearly consistent with the mission of the company. It will be the responsibility of each company manager to ensure that all employee travel meets this objective and that reimbursement made only for actual, reasonable business expenses in connection with authorized travel as defined in this document. In order to maintain control over expenditures, any expense submitted which does not comply with the guidelines of this procedure will not be reimbursed, unless a accompanied by a valid exception by management. Expense reports must be submitted in a timely manner. All travel must be requested using the official company "Travel Authorization Form" (hereafter referred to as a T/A.), signed by the appropriate department manager. Subsequent to approval; travel arrangements, including airfare, rental car, lodging and planning of meetings can be co-ordinated through the appropriate departmental support staff. The company will use a travel management firm to facilitate the procurement of travel. The designated travel firm will provide travel management reports. The rationale behind using a single travel firm is that management reports providing a central data base of: savings analysis, cost allocation regarding air, car and hotel expenditures, is valuable information. If there are a multiple booking sources, this data cannot be complete. All reservations will be made through the company authorized travel management firm:

3. Implementation & Responsibility:


Managers Responsibility:
I. II. Managers should know current travel policy and inform their departmental staff of company policy and procedures. Determine is travel is really necessary to achieve goal. Approve expenses accordance with policy.

III.

Employee's Responsibility:
I. Notify support staff or designated travel agent as early as possible of necessary travel arrangements. If you notify the support staff or travel agent of your travel plans seven (7) days or more in advance, your trip will, in most cases cost considerably less. If travel is requested less than 7 days prior to departure, a low-fare airline such as Indigo, Go Air, INDIGO, Spice jet etc. must be used. Work around customer's schedule when requesting travel arrangements. Never should you inconvenience a customer, so that you can travel on your frequent flyer carrier. Incur only expenses that are consistent with the business needs, and exercise care in determining appropriate expenditures Use Company authorized travel agency and vendors the company has negotiated discount programs with. Submit expense reports as outlined in the expense section on this policy, on a timely basis (within 60 days). Employee must pay company credit balances when due.

II. III. IV. V. VI.

4. Travel Authorization & Approval:


Upon determination that a trip is necessary, a "Travel Authorization" (T/A) form must be filled out and signed by department manager. This form can then be faxed or emailed to the designated travel agency to make reservations. Travel agency will not have authorization to issue airline tickets unless a signed T/A is received. Department Managers and Executives need not have a signed T/A to procure travel.

5. Air Travel:
If employee will travel Bus, coach and Train thereby saving the company substantial amount of funds, then the company will provide additional bonus to such employee.

6. Auto Rental:
I. II. When a rental is necessary, Sharing cabs /Auto Rickshaw/ Car/ Jeeps should be utilized. In case of individual Car rent has negotiated special lower rates for the company. Employees are request to make a note of the Car Registration No., Valid Driving License along with insurance of car hired.

The company insurance package covers employees while traveling. Therefore, decline the optional insurance coverage. In the event of an accident while traveling, you must notify Human Resources immediately.

7. Personal Auto Reimbursement:


I. Employees are only authorized to use his/her automobile if they have both a valid drivers license and current comprehensive auto insurance, including liability. If not, the employee is not authorized to travel for the company. When an employee uses his/her personal automobile on approved company business, the company will pay 6/- per KM. Company will also reimburse all actual auto tolls and parking fees, with a receipt. Mileage from employee's home to regular assigned work location is not a reimbursable expense. However, if the employee goes directly from home to another work assignment other than the regular work location, and the distance to the work assignment is greater than the distance to the regular work location, the employee can expense the difference. In order to receive reimbursement for mileage, the employee must complete an expense report specifying purpose of trip, start and finish odometer reading, point of origin, destination and time of trip. The employee assumes the responsibility for all parking and traffic fines.

II. III.

IV. V.

8. Lodging:
I. All company authorized accommodations must meet with industry accepted business travel standards with reference to comfort, convenience and cost. a) You are free to make other arrangements, however Fire Solution India Pvt. Ltd will NOT reimburse for more than annexures table as per Staff category and base rate, unless approved by a manager. Lodging reservations can be placed in advance on arrival. The employee is responsible for confirming that the rate being charged is also the rate listed on the travel itinerary. Any discrepancies should be reported immediately.

II.

9. Meals and Entertainment:


I. Actual, reasonable, and necessary costs for meals will be reimbursed. The employee should be guided by what he/she eats at home. Reimbursement may include a gratuity of up to fifteen (5%) percent of the bill, before sales tax. Receipts are required for any meal in excess of 100.00. Entertainment expenses are reimbursable only with manager approval, and must meet the following conditions:

II.

a) The employee's specific assignment requires the entertainment of the company's customers or potential customers, or others as appropriate. b) The entertainment expense is fully receipted (original receipts required) c) Expenses are authorized by the employee's manager d) The persons entertained, the place and the purpose of the entertainment must be clearly specified. e) Gratuities should normally be in the range of 5-7% of the cost of the services provided. If the quality of services is exceptional, a gratuity up to a maximum of 10% may be considered. f) It should be noted that gratuities must always be calculated before sales tax is applied. A single gratuity will not exceed Rs.100.00 g) Non-reimbursable expenses include, but are not limited to: Alcoholic beverages, airline club dues, rental car club membership fees, airline head seat rental, in-room movies, fines for traffic violations, insurance on life or personal property while traveling, purchase of clothing and/or other personal items, expenses for family, child, pet, home and property care while on a trip.

10.

Laundry Service:

Actual and reasonable laundry expenses will be reimbursed. Receipts must be provided. This applies only after the employee has been away from home for five (5) consecutive days, or if the trip has been unexpectedly extended.

11.

Expense Reporting:

The following conditions apply when submitting expense reports: I. II. Actual and reasonable expenses are reimbursed in accordance with the provisions of this policy and procedure. Employee must submit expense reports during the week after incurring the expenses, or upon returning to the office, whichever is sooner. Failure to submit expense reports within ninety (60) days, will disqualify the employee from receiving reimbursement for expenses incurred while traveling on company business. Include the following items in, or attached to, the expense report when submitting it for payment: Copy of Travel Authorization form signed by department manager

III.

Original or carbon copies of receipts for meal, lodging, air or auto transportation, tolls, gasoline, and any other business expenses over Rs. 100.00 Explanation of any deviation from policy, unauthorized vendors, lodging or transportation, and/or charges submitted "in lieu of" normal expenses. Check made payable to the company, if repayment of travel advance is due. Employees will be reimbursed for expenses on regular pay days. In order for this to occur employee must have submitted expense report to Accounting Department at least 7 working days prior to the next regular pay day.

Managers

Asst. Manager, Engineer, Executive, Officer, Coordinator, Site In charge and Supervisors

Technician, Jr. Engineers Trainee employee, Designer, Draftsman

I
* Low Cost Airline A/C II, III Volvo / A/C Buses *Indica / * Indigo

II
Low Cost Airline * A/C II, III*, Non AC III Volvo / A/C Buses Car *, Shared Car , Auto & Taxi

III
N.A Non AC III Non AC , Video Coach Shared Auto /Taxi/ Jeeps

* Approval Required before Travelling for Cost 1. Shared Taxis, Cabs- Maximum Claim 250/- on one way 2. Overnight Journey ( 12 Hour) only by Train and Volvo

Allowance per Day Category of Staff City Metro Semi metro Other 300 300 250
I II III I II III

Food
200 175 150 175 150 125 3500 2500 1500

Lodge
750 500 400 300 250 200

Total Allowance for Stay and Food

Category of Staff City Metro Semi metro Other


II

III

II

III

Food and Lodge Weekly


3200 2800 2500 2000 1800 1500

Food and Lodge Monthly


6000 4000 4000 4500 3500 3000

Food allowance is for all Three Meals, Refreshments etc. during the Travel Time Lodging facility is applicable only on overnight stays and not available as a stop gap arrangement between connecting travels or an incentive to delay outstation stays. Wherever possible, staff traveling to common place/project should stay on sharing basis, as a matter of practice. Employees are encouraged to stay with their friends, relatives wherever possible and for stays No Supporting allowances are applicable. These guidelines for official travel should not be considered as minimum applicable during tours/travels and constraints should be practiced, in all such matters Purpose of travelling in City Company should reimburse Rs.5.00/- Per K.M.

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