Saswatabanerjee
Partner - Risk Management
Octavious
Hr Manager
V. Balaji
Ir & Hr
Durga2
Hr Executive
Shah Viral
Service
Minijaiswal
Sr. Executive Hr
+5 Others

Thread Started by #durga2

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.
Regards,
Durga
4th April 2011 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

Regards
Octavious
4th April 2011 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.
4th April 2011 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
4th April 2011 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.
4th April 2011 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.
Regards
Octavious
4th April 2011 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.
Regards
5th April 2011 From India, Delhi
Dear,

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.

Balaji
5th April 2011 From India, Madras

Attached Files
Membership is required for download. Create An Account First
File Type: doc travel policy - usable.doc (77.0 KB, 2658 views)
File Type: doc travel eligibility - amended.doc (52.5 KB, 1674 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.

Regards,

Durga
5th April 2011 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.
sgmunje
5th April 2011 From India, Mumbai
Hi
In my company, we have set a 8 km radius. Anyone travelling to a site beyond 8 kms in range from the actual office location is paid a certain amount. You could have a slab, depending on the usual distane of sites.
Regards
5th April 2011 From India, Visakhapatnam
Dear Friend,
It is always true that employees want to take the fruits from the tree and also eat the ones that have fallen on the ground. Similarly owners not only want the fruits on the tree but also collect all those on the ground. It is when both parties insist on taking more than their respective fair share that we have industrial unrest. Hence in your case the employee wants to travel to and fro from home to work/office gratis at company's cost and employers wants to minimise the cost of conveyance by denying the employee the home to work conveyance from being gratis and loaded on the company expenses. What is the fair share of this cost that the employee should bear from his meagre salary and what should the rich employer bear? Is that right?
As an HR professional of over 30 years I suggest that you do some homework. i.e. what is the cost of bearing the conveyance cost vis-a-vis the cost of a work stoppage, harm to the company's goodwill by a disgruntled employee, employee trying to make up the loss of that conveyance reimbursement by some other means difficult for you to monitor, the additional cost of manhours in calculating the distances travelled minus distance from residence to office everytime locationwise on daily basis, the damage to the the psychological fabric of the employee over such a move, etc.,etc.
I can assure you that the savings you plan to get will be far outweighed by the "costs" to the business overall.
Think over it and then decide.
What should be done is dont stop this benefit to all because some few maybe abusing the benefit but catch those few culprits and give them examplery punishment and if the others object ask them what would they prefer- a general clampdown on the benefit or the their acquiescence to the punishment of the culprits.
Hope you will find my treatise of the matter useful. The decision is yours and your management's.
Regards,
UG
5th April 2011 From India, Bangalore
We are a contractual COmpany too and we follow a policy that when we send a person directly to site from Home and not requireing him to come to office we pay them full conveyance and the day we require them to report to office from Home we ask them not to charge the amount for the distance travelled from their home to our office.... Our Employees as more than happy for they have to come hardly one or two times to office.
Regards,
Maneesh Sanghi
5th April 2011 From India, Delhi
Hi
We too have people out of office at client sites for audit and consulting assignments. They don't come to office most of the time.
We have a policy of reimbursing travel cost from deviation point, meaning, the cost is provided from the point where he has to divert from his or her normal route. If the employee goes in a direction different from the way to office, we pay entire conveyance. If he has to travel part of the way common to his office route, then that part is disallowed.
However, this is fair only if the persons posting location is fixed and doesn't change. And if it was known when the person joined. When we changed office 2 years back, we asked each one to give details of differential travle cost and increased salary to that extent. You have to naturally ensure that the person gets pay that is worthwhile for him to travel to office at his own cost.
5th April 2011 From India, Mumbai
thanks every one for wonderful and logical suggestions. I'am looking for more options. Plz keep poasting if you find some more ways to address this issue. Once again thank you very much for your active participations. All of you are amazing.
6th April 2011 From India, Delhi
Durga, why dont u talk to yr manager and convince him if they earn a few bucks, the policy shud be proactive and positive to allow them claim conv from home to work spot and so on. In these days of high labour turnover, once u hv raised this issue, u can talk to yr unorganised labour and make it a point of motivation that u wud paying conv allowance from home to workspot. If the company happens to spend some amount here and there, it does not matter as a health HR policy makes a healthy work force. Yr employees will not try to manipulate and claim the actuals which may be good in the long run.
think of this and act accordingly. I believe we need to come of the conservative shell and think a bit different to maintain the force.
6th April 2011 From India, Bangalore
Dear M/s Durga,
i can understand the situation as i have faced it at many times when i was new. I have a Solution for this and you can contact me by mail. My email id is .
Thanks and Regards
Viplolve
6th April 2011 From India, Delhi
Hello,
There are three Options for you.........
1. Deduct the amount or kms. of the distance from home to office and reimburse the remaining amount/kms. You can bifurcate them as per the designation if vary.
2. You can tell to your boss..If we go long then we should always have a win-win situation and for that if we earn Rs. 100/- with the help of these people then we should spend Re. 1/- for them. Ya their might be few people who take undue advantage of this but we will get more good people whom we can trust.
3. If your boss decline the 2nd option then FIRE HIM...........
19th April 2011 From India, Bombay
Hi,
I have a query, most of the employees do manipulations in their travel Allowance report, just want to know what kind of manipulations they can do.
generally employee submit fake bills of hotels, food, travel bills.
And also if two employees from different department sharing same room on tour and both claim for TA (one claim under with bill head & other claim under without bill claim) how we can recognize these people.
Apart form this what they can do, please suggest as my boss asked me to work on it.
Regards,
Swati
22nd October 2016 From India, Mumbai
Hello all, i am working in a Japanese company having a warehouse in Greater Noida. We have around 20 contractual staff working in warehouse for loading/ unloading activity. All are unskilled workers. Since all the staff were coming from different location, we want to give them conveyance reimbursement as having a company cab will not solve the purpose as the route doesn't match. As per their actual expenses, the cost is coming around 5000/- per person which will not be approved by the management at any cost. Can someone guide me how to design a conveyance policy for contractual labour ? It is very urgent. The salary bracket of all the contractual staff is between 12000-20000 K.
regards
Yamini
30th March 2019 From India, Delhi
Reply (Add What You Know) Start New Discussion

Cite.Co - is a repository of information created by your industry peers and experienced seniors. Register Here and help by adding your inputs to this topic/query page.
Prime Sponsor: TALENTEDGE - Certification Courses for career growth from top institutes like IIM / XLRI direct to device (online digital learning)





About Us Advertise Contact Us
Privacy Policy Disclaimer Terms Of Service



All rights reserved @ 2017 Cite.Co™