Why do we need Travel Policy for employees? 

The following reasons explain the need of a Travel Policy for employees and reason to have travel policy in place.

• Sample Travel policy gives standardised rules and regulations which are to be followed while on travel.
• It saves time of employees as with business Travel Policy in place processes and procedures are clearly mentioned so an employee’s time is not wasted in making arrangements.

Corporate Travel Policy

also results in better analysis with the inputs received from employees review. Better analysis results in better decision making.

• Travel policy helps in cost management.
• Travel expense policy helps to keep an eye on the overall travel expense.
• It determines do’s and don’ts of conduct/behaviour while travelling.

Travel policy for employees includes

1. Travel Guidelines for employees to be followed while travelling.
2. Complete travel policy format
3. Details of company travel policy & procedure
4. Details of boarding and lodging as per HR travel policy
5. Details of the process to be followed for travel arrangements and related aspects as per travel policy template
6. Arrangements for local conveyance in the city ,travel to be done
7. Entitlements details as per different levels.
8. Different categories of cities and how entitlement differs in these cities.
9. Per Diem details
10. Travel insurance while on international travel
11. Safety & security of employees
12. Corporate travel policy best practice

Disclaimer: The content prepared has been created with greatest care. These policies have been prepared for sample. However, for accuracy and completeness.

HRhelpboard.com cannot guarantee. The user is therefore requested to professionally check or to have professionally checked the suitability of all content for its use

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B. Class to be Chosen 

C. Customized  Air tickets

D. Flight Insurance 

E. Cancellation of Travelling:

F. Loss of airline ticket:

G. Transportation from home to airport: 

6. Road  Transportation 

B.   Taxi 

C.  Use of personal cars :

• The employee can use the personal cars for business travel in case it is more economical than other means of transportation. The amount spent by the employee can be reimbursed on actual. However, before the start of travel, approval needs to be taken from HOD and immediate reporting manager.

D.  Sharing of Ride

• If 2 employees are travelling to the same location, they are advised to share the ride. 

7. Rail Transportation

• Rail transportation can be available by the employee in case travel distance is less than 12 hours.

• The rail travel fare is reimbursed as per the entitlement. However, like air class, Rail transportation must be done in the most economical way.

 

Level	Class
4-7	Tier 3 ac
8-11	Tier 2 ac, chair car
12-14	Tier 2 ac, chair car

 

8. Lodging

Using the “Corporate travel policy " the organisation has tie-up with different hotels and the company also have its guest house facility at all major destinations within the country. In case of international travel, accommodation must be done in a hotel or company guest house wherever the guest house facility is available. 

The hotel list as booked by the company is available with the travel desk. 

Hotels other than those booked by the company can be considered if the company preferred hotel is not available or not existing in the city of travel. However, hotel stay as per “HR travel policy” exceeding the preferred rate can be considered only in case

1. The city does not have any preferred hotel as per defined hotel list.
2. No lower rate is available with the hotel.
3. Any exception in terms of hotel stay must be approved by HOD/Director before the start of travel.
4. In case of non-compliance with the travel policy, the extra amount paid will be bearable by the employee.
5. Whenever preferred hotel accommodation is not available the travel help desk will make available at the best rate available.
6. It is expected from the employee that they will ensure that the hotel room rate is booked and charged as per the company's policy.
7. Generally, amenities are included in the company’s rate. Employees are expected to utilise amenities if included in the corporate rates.
8. As per the “Travel policy format “  all reservations etc. will be made by the company authorised travel agency.

     9. In case there is a change in schedule, the cancellation of the reservation made           will be done by referring to the hotel policy on cancellation.                                                  

1. Various  entitlement for which employee is eligible during international travel is explained as :

Entitlement in Euros/ country
Level	Class Acountries	ClassB countries	Class C countries
12 - 14	225.	200.	175.
8-11	250.	175.	150.
1.	175.	150.	120.

 

B. Classificationof Countries

Classification of countries is defined as:
 

Classification of Countries
Group	Countries
A	Americas region,            France, Italy, North,   and West Europe	Australia and    North Asia.
B	Central and South   Europe, Middle East	Africa, East Asia,    and South East Asia
C		Excluding India

 

 C. Similarly,for domestic travel entitlements are explained as:

Entitlement( in Rs.) City/Town
Level	A.	B.	C.
1.	1.	1.	1.
8- 11	1.	1.	1.
1.	1.	1.	1.

  D. Per Diem entitlement for  International traveller

*	*	*
Per Diem for             employees	.In case stay of the     employee exceeds 20     days then employee     will be eligible for     15% of entitlements	Provided by the    company

 E. Classification of cities  as per domestic travel is explained as

Classification of Cities
Class	Cities
A.	Mumbai, Delhi, Hyderabad, Indore, Pune, Kolkata, Bangalore
B.	All state capital and union territories
C.	All other cities and towns

F. Per diem  entitlement for domestic travel

Level	Per diem eligibility ( in Rs.)	Accommodation
1.	16,00	Accommodation by company
	1.	Own stay
1.	12, 00	Accommodation by company
	1.	Own Stay
1.	1.	Accommodation by company
	1.	Own Stay

9. Meals Expenses :

 

Breakfast	20%  of per diem will be payable
Lunch	20% of per diem will be payable
Dinner	20%  of per diem will be payable

 

3. In case food bills are claimed for any client or on entertainment per diem allowance will be reduced.

4. Meal expenses are reimbursable whenever the company business travel demand stays for overnight.

5. When the business travel is for 1 day, Meal expenses are reimbursable under the following conditions:

Breakfast:If the employee is required to leave home 3 hours early than the normal time.

 Dinner: If an employee cant return home within 3 hours or more after normal           working  hours.

10. Expenses  held on entertainment :

The company by solving the “Purpose of travel policy “

However, it should be noted that only those reimbursement are allowed which is contributing towards the business purpose.

11. Process for Expense reporting:

A. Guidelines followed as mentioned under “Travel policy for employees”.

1. All expenses report must be raised through a web-based expense system.
2. All reports must be submitted within 15 days of return from a business trip.
3. If reports are delayed for more than 15 days, it will be considered late.

4. In case the business travel is for more than a month's time expense report must be submitted on a weekly basis through a web-based system.
5. The expense report must have the following items:

1. Travel request form.
2. Actual expense bill related to the meal, transportation etc.
3. If possible, the employee must try to submit expense bill on miscellaneous articles also.
4. Any exception made to the employee must be attached to the expense report.

2. Expense  Payment

1. All the expense payment is made by the finance department.
2. The expense report along with the bill is submitted to the finance department who in turn validate the bills and makes the payment to employee account.
3. In case of international travel, employees are issued with the credit card.
4. The application form for issuance of credit card can be obtained from the web portal.
5. The credit card must be used only for the business purpose, in case it is used for the personal expense it must be indicated clearly in the expense report and payment must be made directly to the company.

3. Miscellaneous  Expenses

1. The company will reimburse calls made for business purpose while travelling. The calls made for the business purpose must be marked clearly in the expense report.
2. The company also encourages the employee to be in touch with the family to maintain communication. So, it will reimburse reasonable personal calls made by the employee. However, before the start of business travel, the employee must submit a declaration with contact details which he/she will be calling while travelling.

      D. Medical Emergency

In case of any medical emergency while travelling for business purpose the organisation insurance carrier will provide referral and support service. The details on the same can be obtained from the travel desk.

     E. Laundary charges

The company will reimburse necessary laundary charges if stay in the location is for business purpose and is more than 7 days.

     F. Spouse/Guest/personal travel combined with business:

Any kind of travel expenses occurring for guest or family member will not be reimbursable.

Spouse/ guests can share the accommodation till the time there is no additional cost to the company.

Revision of the policy

• The company reserves the right to revise, modify any or all clauses of this policy depending upon the demand of business.

 Explanation of the policy 

• Corporate HR department will be the sole authority to interpret the content of this policy.                                

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Travel Policy

Template Sample - 2

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Objective: The objective of the Company travel policy is to lay down guidelines which are to be followed by an employee on domestic or international travel for official work and also to ensure that the travel of employees is effectively managed.

Purpose: The purpose of travel policy is to make guidelines for travel related to business and to provide protection against any kind of misrepresentation and to ensure all reimbursement for the expense done on travel

Eligibility:  This policy applies to all the regular employees of the company and management trainees

Classification of Cities as per Domestic Travel Policy

A Grade	Mumbai, Delhi, Chennai, Hyderabad, Indore, Pune, Kolkata, Bangalore.
B Grade	Guwahati  and Capitals of all other States/Union Territories other than those under Class A cities above
C Grade	All other Cities/Towns

​Classification of countries as per International Travel policy for employees

A Grade	Americas Region, France, Italy, North &West Europe, Australia and North Asia
B Grade	Central & South Europe, Middle East & Africa, East Asia, south East Asia
C Grade	South Asia ( Excluding India)

​Company Travel Policy and Procedure

As per the procedure followed in company travel policy, all business travel must be approved by immediate reporting manager and HOD as per the domestic travel policy. Also as per the HR travel policy any international travel made by employee must also be informed to HR and an approval is must to be taken from immediate reporting manager, HOD and HR. All expenses in case of domestic and international travel are made as per the eligibility of expense made under travel expense policy.

 

NO CLAIM OVER AND ABOVE THE ELIGIBILTY CRITERION WILL BE REIMBURSED.

Guidelines for Travel Policy for employees in India and International travel policy for employees

• All Travel request must be raised by an employee on HRMS tool. Request must be made 30 days prior to the start of travel. This  travel guidelines for employees is mandatory to be followed.
• All guest house /Hotel facility will be made available by travel desk as per the entitlements mentioned in the Company Travel Policy.
• As per travel policy Hotel /Company guest house arrangement will be done by travel desk once travel request has been raised and approved on HRMS tool depending upon the eligibility criterion. In case on urgent travel when bookings have not been made by travel desk an employee can book a hotel as per eligibility criterion and can later on claim the amount on actuals.
• Airport pick and drop can be made by radio taxi/local conveyance depending upon the availability and the same can be reimbursed on submission of actual as per company travel policy & procedure.
• The number of days will be counted from the time of departure till the time of arrival as  per business travel policy.
• Any extension of stay due to personal reason will not be counted as official travel and no reimbursement for personal stay will be made.
• All Claims must be raised on HRMS tool. Filling of Travel expense report is must even in case all expenses were made by company directly as per travel policy format.
• As per Travel Policy All travel request must be duly approved by the approving authority. An automatic notification will reach employee and travel desk after approval. Once approved travel desk can make necessary arrangement after coordinating with employee.
• All travel expense must be settled within 15 days of return from the tour. In case of delay from employee end/travel desk an escalation email will be sent to immediate reporting manager and HOD as per Travel expense policy.
• Travel   advance, if any, to be paid to employee will be credited to employee account.
• Any Travel expense not been used by employee on travel, such amount shall be returned to accounts department with a confirmation mail.
• All reimbursement bills must be supported by original bills / receipts etc.
• In case an employee is accompanying seniors from level above their own level on domestic travel arrangement in such case bookings will be done as per eligibility criterion only.
• Employee cannot avail higher class facility then their own entitlements.
• Any arrangement made over and above the eligibility criterion the same will be deducted from employee salary.

• In case 2 or more employees travelling to the same destination up to level 2 & 3 , twin sharing arrangement will be made. However separate arrangement will be made for level 1
• Team entertainment expense will not be counted as part of travel expense claim.
• In case employee is suppose to take client for dinner/Lunch, amount will be reimbursed on actual. However email approval to be taken from immediate reporting manager before any such event.
• Cancellation of travel shall be duly informed to travel desk at least 2 days before the travelling date and must have a valid reason.
• In case flight/ train missed by employee without any valid reason, the amount will be recovered from employee salary.
• Leave can be allowed to an employee on tour on a case-to-case basis by the HOD. No other charges will be admissible for such period of leave.
• If any company assets are lost while on tour the same should be informed to the concerned authority immediately. In case no action taken company reserves the right to recover the amount of lost assets from employee salary.
• Food claim exclude Alcohol and tobacco.
• In case an employee is using own vehicle /company leased car vehicle to an outstation city in such case reimbursement can be made at the rate of Rs. 9/KM . This clause is not applicable from office to home or vice versa.
• For local travel in outstation city an employee can avail local transport/Taxi depending upon eligibility and availability of transport. This amount can be reimbursed on submission of actual.
• Travel expense report in case found fake, serious disciplinary action will be taken against the employee. Such an act can lead to termination also.

International Travel Policy for    Employees                     .

• All Air travel should be by economy class.
• All arrangement for international travel shall be made by travel desk/admin. Department
• International travel for an employee must be approved by immediate reporting manager, HOD, HR and director.
• It is as per the corporate travel policy while on international travel it is the employee’s responsibility to control travel and meal expense.

• In case arrangement for employee is made in company guest house in the country of travelling expenses for meals, refreshment and other expenses will be given as 20% of entitlement as mentioned in the corporate travel policy.
• All payments while on international travel can be made by credit card , the amount can be reimbursed on submission of  actual. The points however earned by use of credit card can be used by an employee on personal use.
• All claims which are made by foreign exchange / foreign currency can be settled with accounts department on submission of actual, upon return from travel. However all foreign exchange must be drawn from an authorised agent. It is as per business travel policy.
• Most economical preferably local transport must be availed for ground transportation.
• In case employee is making own stay in such case an allowance is paid for $125 in lieu of hotel expense.

Travel Entitlements as per Travel policy for Employees in India

Travel Entitlements as per Travel expense Policy for International travel policy for employees

Level	Country  Classification	Entitlements in Euros
Level 4	A B C	215 200 170
Level 3&2	A B C	200 170 150
Level  1	A B C	170 150 130

 

Per Diem entitlement for International Traveler

Per  Diem	Eligibility	Accommodation
Per Diem for employe	In case stay of the employee exceeds 20 days then employee will be eligible for 15% of entitlements.	Provided by the company

Insurance coverage: Insurance coverage is provided by the company to its international traveler. The insurance cover is provided by the company

​Items which are not covered under Travel Expense Policy

The non reimbursable expenses which are not covered under the Corporate Travel Policy are as follows:

1. Family Care items.
2. Dry cleaning.
3. Expenses for personal entertainment.
4. Any change of airline class or change from economy to business class.

​Local conveyance expense and working on a holiday

Employees are encouraged to use public transportation wherever possible or the most economical means of transport. In case of emergency if an employee has to use some other means of transport in such case approval is required from immediate reporting manager & HOD.

 Also if an employee has to work on holiday or weekend as per the need of hour while travelling to some international location, he/she will be paid 800 Rs. Per day.

​Process to be followed for domestic & International travel

The process to be followed by an employee while going on domestic/ international travel as per travel policy template is explained below. Generally the process to take pre approval is mandatory both in case of domestic as well as international travel however if any changes they are highlighted separately.

                                                    

           

                                                        

​Safety & Security of Employees While on travel (Domestic travel or International travel)

• One of the most important aspects of any business travel policy is to protect employees while on international or domestic travel. Some of the measures that are being taken is as follows:
• As per the travel policy format employee is suppose to inform travel desk & immediate reporting manager about their stay with the help of an itinerary.
• They are also suppose to provide their hotel contact number as soon as they reach the destination
• Time to time intimation of their stay and plan of the day
• Insurance cover as provided by the company on international travel.

Corporate travel policy best practice

• The practices mentioned in the travel policy template are some of the best practices as they include:
• Employee friendly practices
• Details on reimbursable and non reimbursable items
• Clear and easy to follow process & procedure for travel
• Information about safety and security
• Insurance Coverage.

Revision of the Travel policy

The company reserves the right to revise, modify any or all clauses of this policy depending upon demand of business.

Explanation of the Travel policy ​

Corporate HR department will be sole authority to interpret the content of this policy.