Should We Offer Outfit Allowance for Employees Traveling Onsite for 6 Months?

I am working in an IT company with 120 employees. Few of our employees are going for an onsite project for 6 months. Should we give any outfit allowance to them to make some purchases before their travel?

Thanks and Regards,
Rekha
HR Executive

I am unable to understand what you mean by outfit allowance. I presume it is a kind of tour advance. If so, it is up to the organization to pay. Generally, it is a good practice to advance some amount before a person moves for a tour or deputation. This amount is adjusted when the tour bill is settled; otherwise, it can be adjusted from the deputation allowance payable in the forthcoming month(s). Usually, allowances are different from advances; the former is non-refundable, whereas the latter is refunded or adjusted as stated above. Please clarify.

Regards,
Madhu.T.K

Dear Mr. Madhu,

Thank you very much for the reply. What I basically understood from the employee who asked me about this is whether he will be given some amount to make purchases from India for the 6 months he is going to stay abroad. He didn't mean the advance that can be given, and therefore, this amount can't be adjusted during the Tour Settlement. I tried to inquire with a few of my friends and others to see if their companies have such a provision, but none of them do. I personally also feel there is no need for such an allowance, but I wanted to confirm.

Thanks and Regards,
Rekha R Krishnan

Hello, Sir,

I am currently working in one of the engineering firms that undertake projects on a turnkey basis for small-scale hydro power plants. The company has a requirement to depute erection and commissioning engineers to remote sites for varying periods, ranging from 3 to 6 months. These sites are located in remote areas.

My management is requesting a restructuring of the salary to motivate employees to willingly relocate for the duration required by the company to complete these projects. I am tasked with creating a new salary structure and a short-term transfer policy. The company will provide accommodation for individual employees, as we do not encourage bringing families to such remote locations. Additionally, the company will cover the travel expenses to and from the sites and the head office.

I seek your assistance in designing this new policy and salary structure. I would appreciate your advice and guidance on this matter. If possible, could you assist me in obtaining similar policies and salary structures from companies involved in power projects?

Thank you for your help.

Best regards,
Kiran Sharma

Hi Rekha,

You can give them an allowance to purchase winter clothing like coats, sweaters, gloves, etc., depending on the place they are visiting and the weather conditions at that time. We gave our employees an allowance to purchase winter clothing when they visited the UK during winter but didn't give them the same allowance when they were traveling during summer.

Hope this helps.

Lakshmi