Penalties For Violating Company Expense Policy - CiteHR
Sr. Manager- Human Resources
Top Management
Learning & Teaching Fellow (retired)
Hr , Personnel & Admin
Vachaspati Mishra
Hr Officer, Hawk Eye Protection & Detective
+4 Others

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Hi Seniors,
I got a question,recently in my organisation we asked employees to send their reimbursement for cost of misc.expenses ( Repair & Maintenance ) of mobile phones.
and we have received so many fake bill copies from employees to claim the mobile Repair & Maintenance expense.
Can you guide me what penalties should we apply on these employees those have given fake bills ?
same thing did happen in travelling well .....PLZ GUIDE n list down the penalties for me to apply
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In theorganisation I worked for, staff were dismissed for submitting flase expense claims when they travelled abroad. It all depends upon your organisational policies and whether a person admits to his follies. For example, in academia plagiarism is a serious mistake. When a student copied a project in toto and was questioned, he admitted to the fault and was not awarded the degree and was only awarded a diploma. Elsewhere, students have got away without any penalty.
Dear sanjji, How you realized that the person has submitted the fake biils? Do you have any proof?
Dear Sanjjj,
It is better to fit a limit as per the posts and level. Treat their bills as per eligibility. Nothing can be done apart from that. If you go to verify the things than you have to deploy 2-3 peoples for verification only.
Hi, In my view you should not terminate the respective employees but on the other hand one can issue show cause notice/warning letters to the employees.
This kind of incidents happen for higher levels, like CEO will also do such things giving fake bills. It all depends on organisation. Sanction as per eligibilty.
if you are able to prove that the bills are false you can issue a memo
and warn that latter such practices will not be tolerated .
Hope you have a framed travel policy and all employees are made aware of
the same .
Rajeev Dixit
You need to look at this issue holistically. Why is your organisation having a policy of reimbursement for mobile repair expenses .... Is it as part of tax planning to help employees minimise tax outgo from their remuneration, by using government tax laws that are aimed at benefitting employees where they can claim tax exemption for employment related expenses they have to incur. If so such expense claims are limited to a ceiling on the claim depending on the level of the employee in the hierarchy. If so, it is common practice and well known to the company that employees procure (fake!) bills for making these claims limited to their eligibility. Employee can claim only what he/she is eligible under the company rules, as this is treated as a perk for tax planning. There is no question of excess claims using fake bills. I dont find any harm or impropriety in this except that even such practices are not encouraged elsewhere, but compelled to do in Indian context due to our distorted tax structure that encourages such practices. In this case company will have formal policies on the matter and no one can be smarter than the other.

On the othe hand if such provisions are open ended to meet genuine expenses incurred by the employee such as on travel, gratuity, miscellaneous expenses etc. and the employees indulge in malpractices this is to be treated as an integrity issue on the part of the employee and established companies following transparent and ethical practices take them very seriously and the employee may even be simply asked to leave the organisation as the disease will spread like a virus and no organisation will want such a situation in their organisation. When in doubt, the supervisor who is expected to be person of high integrity, moral standards and fair will take a call on the matter and decide. Remember such emloyees always get marked!

Hi there,
Thanks to all for sharing your valuable Feedbacks,expecting more over it.
What i have pointed out are below few actions to be applied or you people can guide me
warning letters by keeping his / her superior in CC
Link it to your Annual performance Ratings
Make him / her out of this policy ( if repeated again)
I have always maintained that a person of doubtful integrity must be dismissed immediately. The amount of the fake bills is not important, what is really important is: can you trust such employees with company assets or sensitive data? will you feel comfortable if they were to make any kind of purchases on behalf of the company?

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