Employee Reimbursement Policy

‘Name of the Company’ expects its employees to be responsible and professional when
incurring the expenses and applying for the reimbursement of the same. The organization
is accountable for the reimbursement for the justifiable costs.

Purpose
This policy describes the reimbursement of the work-related expenses
incurred by the employee from his pocket.

Scope
This policy applies to all the employees who have received permission to
incur work-related expenses.

Work-Related Expenses
Work-related expenses are those costs that the employee incurs while
performing their work duties.

An expense is considered as a work-related expense; the cost must

satisfy the following criteria:

● The expenses are paid by the employee and not reimbursed to him.

● The expenses have recorded proof like a receipt or a bill.

● The expenses were directly related to earning income.

Qualified Expenses
The following expenses are considered to be work-related and are
eligible for reimbursement:

Work Equipment - Purchase of gadgets and equipment like laptops,

briefcases, stationery, etc. to increase work efficiency.

Meals with Clients - Expenses incurred on the lunch or dinner with the
clients to seal in the business deals. These meetings must be SCHEDULED
in advance and authorized by the HR department.

Double House-Keeping - If the employee has a second household for the

reasons for work, the following expenses are reimbursable:

● Rent.
 ● Necessary furniture (Bed, TV, a set of chairs, a table, kitchenware,
and a sofa).

● Basic bills (Electricity, cooking gas, water, house tax, etc.).

Telephone and Internet expenses - When the employee uses a separate

company-allotted phone for work purposes and pays the costs for the
same.

Legal Documentation - Any expenses paid by the employee to complete

legal work for the company.

Medical Care Fees -Medical expenses when the employee falls sick or
suffers physical damages due to an unsafe workplace.

ALL THE EXPENSES MUST BE APPROVED BY THE HR BEFORE

INCURRING.

Unqualified Expenses
Any expenses not mentioned under the Qualified Expenses shall be
considered as Unqualified Expenses.

The employee shall take prior permission from the organization to pay
work-related expenses.

The following is a list of possible expenses that are unqualified to be

reimbursed. The definition is not limited to the list.

Personal Travelling Expenses - The expenses incurred by the employee

to travel for personal reasons.

Extended Expenses - The expenses incurred by the employee when they

extend their business travel for reasons other than work.

Personal Products - Any products like toiletries, grooming products, or

cosmetics purchased by the employee for personal use and has no
relation to work whatsoever.

Traveling to and from work - Not all the expenses of the commute to and
from work incurred by the employees are reimbursed. For more
information on the same, the employees are advised to refer to the Local
Conveyance Policy of the Company.

Family Expenses- Any expense incurred for or by the spouse, children,

parents, or relatives of the employee on the trip or during company
lunch/dinners.
Guidelines
The employee must possess the receipts of the expenses he intends to be
reimbursed.

The employee must submit such receipts with the application for
reimbursement.

The receipts shall be accompanied by a summary of the expenses that

include:

● Name of the parties involved and present during the time of

incurring such expense.

● The description and essence of the expense.

● The intent of the expense.

The application and the receipts and summary shall be submitted to the
‘Position of the Person’ for approval.

The applications with all the above-mentioned attachments shall be

submitted within ‘Number’ days from the day of incurring such expenses.

In case of lunch/dinners with the clients;

● The employee shall inform the ‘Position of the Person’ about such
meetings ‘Number’ days before the actual meeting.

● The employee Must not spend more than the amount mentioned by
the ‘Position of the Person.’

● This amount varies depending on the scale of business with the

clients.

In case of traveling expenses, the employees are advised to refer to the

traveling expense policy of the company to get detailed information.

Reimbursement of Expenses
The ‘Position of the Person’ shall review the reimbursement application
and decide on the approval of the same within ‘Number’ days from
receiving such an application.

The ‘Position of the Person’ must communicate the approval of the

reimbursement application to the concerned employee in written form.

The employee will receive reimbursement with the next payroll.

In some cases, the ‘Position of the Person’ will SPECIFY in a written note,
if reimbursement will be paid in cash or by cheque separately from the
payroll.

If the application for reimbursement is rejected, the ‘Position of the

Person’ MUST specify the reasons for such disapproval.

If the employee spends an amount that exceeds the limits specified by the
‘Position of the Person,’ the excess amount will NOT be reimbursed and is
to be borne by the employee.