Partner - Risk Management
Hr Manager
V. Balaji
Ir & Hr
Hr Executive
Manager Hr
Shah Viral
Sr. Executive Hr
+5 Others

Dear All,
I need your instant help. Actually my co. is into sales and services. We do glass installation in buldings, hotels, offices, malls.
In our co. ,employees who are installers needs to move from one site to another and they do not come to office.
Now problem is related to conveyance.
They get complete conveyance reimburesed from home to site. And as per my manger we should minus the amount/k.m from home to poasted location and only pay for over and above milage.
Employees who stay quite far from posted location protesting to this policy saying their salary is quite low and they live far from posted location and in such case they need to pay complete amt. of conveyance from their own pocket which they can not afford.
Plz help me in making a coveyance policy which is in favour of both-co. & employee.
Its a startup co. so we really need to control our cost but at the same time we need to ensure that our employees do not suffer.
Plz help me in finding the mid way.

From India, Delhi
Dear Durga

Good question. When in a conflict its easy to decide when:-

1.When one party is right and other party is wrong.
2.When both the party is wrong.

But when both parties are right it becomes very difficult to decide who and what is right. The best method under such circumstance is to decide, on the basis of practicality and logic rather than what is right and what is wrong.

In above case, what you can do best is take the average annual conveyance charges submitted by the employees and try and get the lowest and highest amount submitted for towards conveyance by the employees and then get the median figure and use the same as basic bench mark amount towards conveyance and increase of amount above the same can be investigated by you, to understand as to how and why there has been increase.

Also you can deduct a basic, standard amount from the conveyance, this amount should be standard and would be the normal expenses that employee would have to incur if he would have commuted from home to office or office to home . This should be treated as compulsory deduction.

Hope this will help you


From India, Mumbai
Thanks Octavious, it was really a speedy answer. Can I have your contact no. if you dont mind. I really need your help which I may not be able to explain in this cite.
From India, Delhi
Dear Durga I am sorry, I cannot give you my contact details, what you can do is sent email via citehr. Regards Octavious
From India, Mumbai
No issues. The suggestion you gave, we tried it on some of our employees, infact tried to make them understand that with this policy they can save conveyance amount when the site is nearby and that saved money can easily be utilized when the site is far off.
But most of them are just not ready to accept it. They are uneducated. They easily forget what they saved but cribs about when expense goes above approved limit.
How to handel such people? They are highly unorganized. Casual employees are highly uncontrolable. They stop working some times to bult the pressure.

From India, Delhi
Dear Octavious
What you can do is you can hold median of average as the base figure and not amount above shall be cleared above the same towards conveyance. Also you can give them some kind travel pass,which allows the employees to travel entire Delhi on one single pass. I believe public transport does has such facility.
In coming future remember that it is always better to engage such causal labours through contract labours.

From India, Mumbai
I think you are wrong in trying to deduct the conveyance from home to office and then pay the amount travelled over and above it only. The logic is this - it is the responsibility of the employee to report to office and bear the expense of that travel but it is the duty of the company to reimburse the travel to any customer site. Now you can start insisting that everyone report to office in the morning and they should do that but that will only waste everyone's time.

From India, Delhi

We also engage in similar kind of operations. The employees are not required to come to office on daily basis, because their job will be at various sites. This site might change frequently, therefore they are required to reprot at site whenever such instructions are given.

We have conveyance reimbursement system paid on weekly basis on "consolidated" basis. say, 320/- or so. This amount (or any other amount) is arrived at by our past experience i.e. no.of jobs one can handle in a day. This is for the employees who travel certain Kms radius on day-to-day basis. If the same employee is required to go beyoond this distance, we enhance conveyance only for those people. So, it depends on the distance one would travel.

We have been practicing this system for the last 40 years and there is no problem at all with our employees. We have more than 4700 employees in our direct roll across the country and the same system is replicated all over. The casual employees are also employees whether they work through a contractor and in your own roll, they work for your organizatio, right? Apply the same logic to them too.

See our travel policy that is attached herewith (original policy and the subsequent amendment in their eligibility). This is meant for our regular employees. We treat "Casual Labours" working with our contractors in "others" category and apply the rates applicable to them as per this policy.

As someone commented, when their job is at site, there is no point in asking them to come to office first in the morning and ask them to disperse, it is waste of time and energy and it is unproductive.

What you can do is to understand the practicality of the situation and go for paying "reasonable" amount wherein they do not incur penny from their packet; and in this pursuit let them also think that this is not a "money making" exercise.


From India, Madras

Attached Files
File Type: doc travel policy - usable.doc (77.0 KB, 2692 views)
File Type: doc travel eligibility - amended.doc (52.5 KB, 1704 views)

Thanks Balaji, Octavious & Ranjit for your great suggestions. Where I'am saying that we deduct the km/amount from home to poasting location from the total travel that means employees are directly going to site not coming to office. But had they come to office they would have paid from their own pocket. Putting that logic we made the policy that co. will only pay for over and above mielage if you are supposed to report direct at site. From site if you moe to another site for official work that will be completely reimbursed by Co.. Few employees raised objection so we fixed a lumpsum amount for them for conveyance considering their past month's conveyance claimed by them as a base. But when the site changes and suppose new site is too far comparitively to past site they ask us to reimburse completely beyond the fixed limit but they do not think that if the site is near to their home that they make income out of fixed conveyance.

Now what should we do that we do not change it every now and then.

There can be following options:

1) We find the median figure considering farthest distance and nearest one and fix it and then no further change.

2) We say that we would pay for over and above mielage but we keep the provision of flexibility when and where required. Like if Manager recoomends & HOD approves, beyond the limit can be approved for reimbursement.

3) We pay the whole amount on the basis of fixed mode travel determined for each level if in case an employee directly reporting at site.

What else can be options? Plz let me know if you see any logic in above points.



From India, Delhi
Dear Durga,
Yes,the to & fro standard distance is normally deducted if employee claims total conveyance But if he claims,only the additional kilometers,then he is
paid accordingly with out any deductions as above.

From India, Mumbai

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