POLICY ON TRAVEL EXPENSES

Transcription

1 Policy No.: TC Version: 2 Authorization Date: Policy Effective From: Management Guideline No: 178 Supersedes: NA Previous Authorization Date: POLICY ON TRAVEL EXPENSES SECTION: TRAVEL & CONVEYANCE 1. PURPOSE To provide cost effective travel and comfortable stay during business related tours of employees. 2. POLICY 2.1. Guidelines: Generally, travel expenditure should: Be reasonable and business specific. Not be lavish or extravagant under the circumstances. It is the Company s policy that the expenditure which does not meet the above tests, or for which the necessary documentation is not available, will not be reimbursed. The primary responsibility for ensuring that these tests are met, lies collectively with The person seeking reimbursement The signatory to the voucher The approving Manager The Manager who is authorized to approve the traveling expenses of those reporting to him/her, is responsible for reviewing the expense report/details for reasonableness and is expected to exercise discretionary judgment having knowledge of the business nature of the trip. City-wise, grade-wise, limits on hotels and food expenses, should be strictly adhered to as per the Annexure- TC-002(A) for each of them. No deviation from the Company s rules is permitted even in cases where all the expenses are being reimbursed by the customer/supplier/associate, unless these are specifically approved by the Divisional Head. Payment for excess baggage, if any, will be permitted only if supported by vouchers and a proper justification Expense Limits (In Days): The travel expense limits apply for stay under seven days at one location. For extended stay, prior sanction of concerned GM / Business Head is to be obtained Exclusion: Expenditure on alcoholic drinks or cigarettes, while on tour, will not be reimbursed except in case of prior approval of Divisional Head Page 1 of 5

2 2.4. Eligibility: All categories of employees from Grade M5 to M Lodging & boarding expenses (When staying in a Hotel): When an employee stays in a hotel whilst on tour, the actual expenses incurred by the employee, subject to the limits specified under Hotel Expenses in Annexure-TC-002(A) will be reimbursed on production of supporting bills and vouchers. In case the expense limits for any expense head are exceeded on a particular day, but is within the limits of the entire tour, the same may be allowed. All expenses on lodging and meals while on tour should be supported by vouchers. Meal Expenses up to Rs.50/- per day may be claimed without submitting any bills/cash memos, if the same is difficult to obtain. However, cash memos/receipts should be obtained wherever practical/possible. Miscellaneous Expenses subject to limits specified in Annexure-TC-002(A) may be claimed without vouchers. Miscellaneous Expenses may include tips, porterage, laundry and personal expenses of a miscellaneous nature such as newspaper, magazines, etc. The daily expense limits for Hotel Expenses specified in AnnexureTC-002(A) will be applied on the basis of the number of days including over-night stay spent in the hotel (from check-in to check-out). For the period of the journey, employee may claim Meal Expenses and Miscellaneous Expenses at actuals subject to the limits specified in Annexure-TC-002(A). Meal Expenses for the period of the journey will be reimbursed only on production of vouchers, unless the expense is less than Rs.50/- per day. As far as possible, hotel rooms should be vacated before or at the applicable check-out time on the day of the departure Lodging & boarding expenses (When staying at the Transit House): In case Company s guest/transit flat facilities are availed of, then the employee can claim reimbursement of meals expenses against supporting bills/cash memos, subject to the limits specified in Annexure-TC- 002(A). They can also claim Miscellaneous Expenses subject to limits specified in Annexure-TC-002(A) Lodging & boarding expenses (When own arrangements made): In case hotel/company transit house facilities are not availed of and own arrangement is made for the stay, the Daily Allowance, as specified in Annexure-TC-002(A) will be paid. No supporting vouchers need to be submitted for claiming this amount of allowance. This covers all meals and miscellaneous expenses at the place/places of tour. The Daily Allowance can be claimed only for the period of the stay at the place/places of tour. It cannot be claimed for the period of the journey. For the period of the journey, employees may claim Meal Expenses and Miscellaneous Expenses at actual subject to limits specified in Annexure-TC- 002(A). Page 2 of 5

3 Employees are not permitted to claim this allowance if the journey is for less than a day or when there is no overnight stay Boarding & lodging expenses (General): The daily expense limits that are applicable for Meal Expenses and Miscellaneous Expenses shall be calculated from the time of departure from the base to the time of return to the base. However, half a day s Meal/Miscellaneous Allowance shall be paid for fraction of a day less than 12 hours and at the full rate for fraction of a day more than 12 hours Entertainment while on tour: Whenever an employee, while on tour, entertains an official guest, reasonable actual expenditure will be reimbursed on submission of bills. In the case of employees up to Grade M16 a specific approval by the concerned GM/Divisional Business Head should be received for any such expenditure Mode of travel: Mode and class of travel will be as per Annexure-TC-002(A). In case of Grades M11/M12, air travel will be permissible depending on the criticality / urgency of the assignment. This will require concerned Divisional Head s approval. Without this, the difference in amount may be recovered. However, if the rail journey is more than 900 kms employees in Grade M12 may be permitted to travel by air. Also if the air travel cost (as per type of cheap fares) justifies the same, it will be permitted. Those traveling by air, should attach the used/unused air ticket coupon(s) with their travel reimbursement statement and bills/vouchers, even if air fare charges are paid directly by the Company. Department Heads are responsible to monitor the travel patterns of their department and people to ensure that air travel is used judiciously. Those traveling by Train (1st Class/ 2nd AC) should enclose their Rail Receipt/Ticket or a photocopy of the same Travel by taxi / company allotted vehicle: For employees in Grade M15 and above, traveling between places which are not conveniently connected by air/train/bus, travel by a suitable taxi (A/C if required) will be permissible with the approval of the Divisional Head Local conveyance while on tour: For Local Conveyance while on tour, employees are expected to use the form of travel most cost effective as far as the objective of visit is concerned. Employees in Grade M15 and above may use hired taxis or Company allotted Vehicles (A/C if required). Page 3 of 5

4 Mode of Local Conveyance for employees in Grades M11 M14 may be by taxi/ auto / rail, as convenient and cost effective. Mode of conveyance for Grades M5 M10 may be by auto / rail / bus, as convenient and cost effective. Detailed break-up of movement should be shown while claiming reimbursement for Local Conveyance expenses (date, place, party visited and approximate distance) One day tours: An employee who leaves on tour and returns from tour on the same day shall be entitled to reimbursement of expenses at actuals, duly supported by bills and vouchers where possible, subject to the limits of 50% of the applicable fixed daily expenses, i.e. Meal & Miscellaneous Expenses in Annexure-TC-002(A) Miscellaneous: Those making use of an overnight train/bus, will be allowed an additional allowance of Rs.100/- to cover miscellaneous expenses during the journey. No bills need to be submitted to claim this miscellaneous/overnight allowance. All official telephone calls should be made from the office / STD booths/own mobile and not from hotels so as to save on costs. One personal call per day upto Rs.20/- will be permitted. 3. PROCESS This process is developed with an objective to standardize the process for application and reimbursement of travel expenses per the policy of GNO Reference Flow Chart Accounts Department Employee Immediate Superior Prepare JOE based on individual eligibility Approved? Reimbursement Administration Submit Travel expenses in ERS Expense Reimbursement Completion YES YES Approved? Page 4 of 5

5 A Job Order Estimate is to be prepared in advance and approved by the superior. The total expenditure has to be within the approved Job Order. The Job Order Estimate should contain all travel details and fare. All employees should submit their travel expenses in the prescribed form Travel Expense Format to be submitted to respective Accounts Departments. All expenses whether incurred through Corporate Credit Card or otherwise should be shown in the Expense Statement. All travel expense vouchers should be submitted not later than two weeks on completion of the trip. All cash advances should be settled within two weeks following the completion of the trip, for which the advance was granted. Any expenses on travel incurred for other than self, should specifically be mentioned in the travel report. 4. COMMITMENT TO PERFORM 4.1. Process owner: a. Primary: Head HR b. Secondary: Immediate Superior 4.2. Quality Norm: a. All the travel reimbursements should be claimed within 2 months of incurring expense. In cases, when an employee claims an expense after more than 2 months, approvals from the accounts department and the higher authority are needed. Page 5 of 5