Business Travel Policy For Employees
Business travel is a major controllable expense, so a modern business travel policy for employees aims for balancing the company's budget with its strategic interests. It explains the proper procedures for arranging business trips, how to manage expenses, what costs are covered, and who is responsible for approving trips.
Created by
Ahmed Abdel Wahab
|
Human Resources Adviser
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What’s included in the business travel policy for employees?
The business travel policy for employees outlines the rules and procedures for business travel expenses, both within and outside Saudi Arabia. It clarifies the types and durations of travel missions, then specifies the parties responsible for approving trips, depending on whether the trip is domestic or international.
The policy discusses various modes of transportation, such as traveling by company car, an employee's personal car, or by plane. It also details the circumstances under which an employee is eligible for a travel allowance or reimbursement for incurred expenses.
To prevent confusion, the business travel & reimbursement policy defines the travel distance in kilometers that turns a work task to an official travel mission. It also defines what constitutes long-distance travel and the additional benefits allocated for it, along with the criteria for determining air ticket class (business or economy).
Business Travel Policy For Employees - Table of contents Drag
1. Objective
2. Scope
3. Travel Classification
4. Approval Requirements
5. Purpose of Travel
6. Travel Report
7. Knowledge Sharing
8. Personal Vehicle Use
9. Use of Company Car
10. Close-distance Missions
11. Work Hours Travel
12. Overnight Requirement
13. Hospitalization Cases
14. Alternative Coverage
15. Cash in Lieu of Ticket
16. Additional Travel Days
17. Delegation Teams
18. Travel Class
19. Advance Payment
20. Family Accompaniment
21. Ticket Flexibility
22. Travel Insurance
23. Compliance
Why do you need a business travel policy for employees?
A regulatory framework for business travel, from approval to post-return procedures.
To enable accountability and facilitate expense tracking and financial reporting.
To ensure important opportunities aren't missed due to budget constraints.
Reducing confusion, travel hassles, and misunderstandings.
How do you use the model?
Download the template and review the content.
Customize it with name, logo and level of flexibility and autonomy granted to employees.
Involve employees who travel regularly in drafting, add it to the employee handbook.
Ensure compliance by getting business travel policy for employees reviewed by a legal/HR expert.
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FAQ
There's no one-size-fits-all standard for flexibility; rather, the acceptable degree of flexibility in a business travel expenses policy should clearly reflect the prevailing company culture and be determined by the company's risk tolerance.
For example, among the issues that should be addressed are:
- Does the employee book their own airline tickets, or does the company do it on their behalf?
- Can an employee combine business travel with personal travel?
- Is it permissible for an employee to bring family members along during business travel? If yes, what are the specific guidelines for this?
Additionally, consider the level of strictness in policy enforcement. For instance, do all trips require alignment with the business travel approval policy, or are there certain types of trips where simply notifying a manager suffices?
A Business Travel System is a digital system designed to manage and organize all employee business trips from a single, centralized location. It efficiently stores travel requests submitted by employees, making them easy to review and respond to.
Employees can input all relevant details, such as the reason for travel and mode of transportation, and even easily book travel tickets within the scope defined by the company's business travel policy for employees.
A system like Jisr also offers helpful features such as integrated travel booking platforms, smart payment methods, and direct integration with employee bank accounts, allowing the company to directly transfer expense reimbursements according to travel reimbursement policy for employees.
Business travel encompasses any journey undertaken for work-related purposes. Common examples include:
- Attending meetings or conferences in other cities or countries to network, learn, or collaborate.
- Client visits to build relationships, close deals, or provide on-site support.
- Trade shows and exhibitions where companies showcase products, gather market insights, or connect with partners.
- Internal meetings or team-building activities for companies with multiple offices or remote workforces.
- Site visits or fieldwork in industries like construction or manufacturing that require travel to specific project locations
A business travel plan encompasses every detail of an employee's journey for work. It's designed to ensure each trip aligns with company policies, stays within budget, helps employees achieve their objectives, and prioritizes traveler safety and well-being.
The HR department orchestrates this by understanding industry trends, researching destinations, assessing risks, and sometimes negotiating corporate rates. The goal is to create tailored itineraries that meet both the business goals of the trip and the unique needs of the individual traveler.
The four C's of corporate travel management are Cost, Compliance, Convenience, and Control. These principles are essential for businesses to effectively manage travel expenses and ensure adherence to company rules and objectives.
- Cost focuses on optimizing spending, securing favorable rates, and identifying savings opportunities.
- Compliance ensures that all travel activities adhere to the company's travel policy, industry regulations, and legal requirements.
- Convenience aims to streamline the travel experience for employees, making booking, expense reporting, and on-the-go support as seamless as possible.
- Control refers to the ability of the company to monitor, track, and manage all aspects of its travel program, from approvals to expenditures.