How to Handle Unfair Travel Reimbursement Claims Without Hurting Team Morale?

Dear All,

As a senior HR head, I am facing some issues. Kindly help me out.

I have a technical person with 2 years of experience who is good technically, but his attitude is very bad. For example, he submits a bill for petrol allowance from his home to the office if he works on Sundays. We have provided him with many privileges, such as no loss of pay. However, when questioned, he tries to submit some other bill. Even though there is a bus facility available, he only uses an auto and claims heavily. When I address these issues, he reflects it in his performance.

Moreover, this behavior is influencing other employees who are following his footsteps (this should not need to be taught). As a growing company, we, as employees, should assist in achieving the company's goals. I am not expecting them to work for free, but I believe they should not deceive the company. It is unfair.

I would appreciate your suggestions.

Regards,
Ramya

Dear Ramya,

This is quite common in companies that are in the growing/transformational stage.

I am doubtful, or rather not aware, about an HR Handbook/Manual existing in your company (the information provided by you is incomplete). If yes, kindly initiate the travel reimbursements only based on the handbook rules framed and ratified by the management.

It's evident that he is taking advantage of the situation where he is technically a superior employee, contributing significantly to the organization. It doesn't mean that the company can't work without him. In any given situation, a company is bigger than an individual. Kindly sit with him one day (probably with a senior management person) and speak to him about the effects of his actions/behaviors on the other employees.

If he doesn't understand the issue and doesn't agree to resolve it, I think it's time for your company to consider another person for his position.

If you contain/restrict deviations at this stage of your company, the future will look great and help evolve into a better corporate.

Dear Ms. Ramya,

It's really sad that you are in such a situation, but I hope you could come out of it soon. Don't you have policies for employee expenses? Have you not mentioned the details of expenses in the offer letter?

For example, there should be a clear mention of transportation expenses in the offer letter. If this check is done, then how does the employee claim more for transportation reimbursement? One or two-day exceptions are okay, depending on the situation.

Regarding privileges for LOP: is he frequently absent? If these issues persist, they could affect his performance.

My suggestion is to have a casual talk with your team, keeping things confidential. Enforce strict rules and ensure they are adhered to. Make the person understand that what he is doing is wrong if he is behaving inappropriately. To the maximum extent, try to warn him and make him realize that this is not the right way to behave in the organization.

HANDLE WITH CARE

Regards, Chandy

Dear Ramya,

It appears that you need to bring in a process-centric work culture rather than a person-centric work culture. If it is not there, problems of this kind come up.

Now coming to the person in question. He is not showing his 'attitude' as such but taking undue advantage of not designing a proper "Policy on Local Conveyance." Have you designed this policy? If yes, then have you mentioned who is authorized for what type of local conveyance? What is the rate per KM, etc. Design this policy, circulate it to one and all, and then start passing on the claims on local conveyance as per the policy.

Secondly, it appears that he is too much praised for his work. A person should never talk about performance; rather, performance should speak for itself. How can any employee use performance as a bargaining chip? Better straighten this employee now itself lest he will spell far more trouble for you in the future. As you have rightly said, he is vitiating your company's culture. Don't allow it to get degraded further.

I second the views of Mr. Sriram Warrier to start looking for his replacement.

My last surprise is that you say that you are a senior HR Head and you write this type of issue of an employee who has just two years of service.

Ok...

Dinesh V Divekar

Hi Ramya,

This is not only your problem, but there are numerous personnel who are suffering with the same issue.

I agree with you that employees should not cheat the company, but we all know that some employees are still doing so, and to some extent, we are allowing them to continue.

Despite being aware that employees are submitting false travel bills, we are not taking any action against it. Instead, we expect them to demonstrate loyalty to the organization, which is not right.

I have a question for you: why are you addressing the issue of expense bills with him and not with his Boss/HOD?

If the individual is claiming expenses with proper approval from their supervisor or boss and there are no objections, then you should not have any concerns. You can inquire whether they have noticed any discrepancies.

However, if you discover that the Boss/Supervisor is not responsive or does not consider this a problem, then you should consider revising the Travel Procedure and Expense Claim Guidelines. You may also need to review the Employee Entitlement/Reimbursement clause. For instance:

- Employees must complete the Expense Claim Form with all travel details (location, dates, and times).
- Employees must adhere to their entitlements.
- The Travel Expense Claim Form must be submitted to the Admin. Department with proper approval from their HOD/BOSS/SUPERVISOR, etc.

As a Senior HR Head within your organization, you have the authority to address this issue with your Department Managers/GM and review the Travel Policy. It is essential not to allow anyone to disrupt the organizational environment or follow the path of other employees engaging in similar behavior.

Serious action needs to be taken.

Hello Ramya,

Like Sriram Warrier, Dinesh V Divekar, and others mentioned, it's time for you to get another person on board.

What's his technical skillset—maybe I can help you out with this?

Also, at the same time, like they suggested, you need to have some semblance of an HR Policy Document in place—not only to ensure the employees have clarity on the eligibilities and make your life simpler or smoother but also to ensure you don't end up in similar situations all over again with any new entries.

Looking at the larger picture, I think in a way, you or your company was also responsible for this situation to evolve—so don't blame HIM ALONE for this. I am sure there must have been earlier situations when he was given a lot of lenience due to his technical competence and since the Company needed him MORE THAN he needed the Company—which he took advantage of very well. Even if you sit with him at this stage and explain to him to correct himself, I doubt if it's worth the trouble.

Regards,

TS

Thank you very much for all your input. I have to take some serious steps as per your suggestions.

Regards,
Ramya.

Thanks for all your inputs. Yes, I have to take some serious steps in this issue.

Regards,
Ramya.

Ramya,

Keep in mind "nobody is indispensable" in this world. If discipline is not maintained, there is no use of the services of an employee, however efficient they may be. By allowing him to break the rules and giving payment during the LOP period, you have enabled him to take undue advantage and exploit the circumstances.

Regards,
pon

Pon is right, Ramya.

I recollect a quote—I think it's from Peter Drucker, the well-known management guru—which goes like this: "If you think you have become 'indispensable' to your organization, realize that the time to move on has come. Any time spent from now on isn't good for you or the organization."

You mentioned you 'have taken some serious steps'. If you can share them—to the extent you can—that will help all who might be going through similar trials too.

Regards,
TS

First, you need to prepare a local conveyance policy before you can move forward from this kind of attitude.

Regards,
Vijay Bhandari

Please get the policy in place. It's always useful to use the policy as a tool and speak to the employee. Further, any more such behaviors should be handled immediately rather than giving someone time and taking due advantage of it.

Hi Ramya,

In the present market scenario, along with technical expertise, other skills like discipline, communication, attitude, and behavior also matter a lot. The policies should be the same for all employees, whether they are technically strong or average. If someone is technically strong, it is a good thing that needs to be appreciated in other ways, but they should not be allowed to disobey the policies. I understand it is a tough situation to handle; you can discuss this issue with his manager or someone from management who is also responsible for these policies. If it is not addressed now, it will create issues in other policies and among other employees.

Regards,
Suresh HP

Dear Ramya,

I also faced a similar situation in my erstwhile organization. Don't get surprised; he was a "Sr. Manager" in that organization. We used to depute him to various factories in different locations like Ranipet, Vellore, Coimbatore, etc., for the inspection of jobs being carried out by the vendors.

This person submitted a lot of bills where at that time, breakfast cost only Rs. 17.50 (with this amount you could get 4 idlis and 1 vada). In those cities, there were only smaller hotels that didn't have printed bill books, so they would give bills on a piece of white paper with the hotel's rubber stamp, which was considered as a bill.

The Sr. Manager submitted a big bunch of papers where almost all bills had been altered; he changed 1 to 4 (by adding "L" across 1, he changed the figure to Rs. 47.50). While scrutinizing the bills, I noticed some mismatching of ink color, etc., and doubted the veracity of the bills. When I questioned the Sr. Manager about it, he replied:

"I am deputed to all places, I am required to work on Sundays sometimes, and even late hours, and there is no OT, etc., therefore, yes, I did that."

I then reprimanded him. I told him sternly, "You are a Manager. Management individuals are placed in that position based on their experience, skills, and ability to manage the department. They are compensated with many facilities that normal workers/staff don't have. As a Manager, you are required to come to the office whenever Management requires you to do so. That's why you are a manager. I have no issue with paying you OT, provided I change your grade and designation to that of a normal worker. Can we do that?" He couldn't respond.

I escalated the matter to the unit head, who instructed me not to involve him and asked me to handle it. I adjusted the bill to the actual expenses and also cautioned him that if he repeated this behavior, he would be dismissed.

Therefore, as you rightly said, it's about attitude; merely calling someone by a designation like "Sr. Manager" or "General Manager" doesn't make them one. His designation may have grown, but he remained a worker. Even at the Sr. Manager level, his attitude was lacking. When a person progresses in the organization from Asst. Manager to Dy. Manager, Manager, etc., their attitude should also develop; if not, you could end up with a "glorified worker" posing as a General Manager.

So, be firm with them; there is nothing wrong.

Balaji

To address the issue of exaggerating food bills, companies should implement a policy that sets limits for food expenses based on employees' positions while they are on duty or assignment. In my organization, the limit for food expenses is $600 per day with receipts or $200 per day without receipts. This policy helps to reduce instances of fraud or dishonesty.

Ramya,

Hi,

Your department should not work under anybody's pressure. Follow the policies judiciously; if there is no policy, frame it. Get all his claims verified and certified by his HOD; you should not entertain them directly. Keep other persons in the loop if you feel that some mischief is happening. Say, like audit objections will occur before processing. For better administration, you must have the ability to say NO. The company's interest comes first, then the individual's. Nobody is indispensable for a company; this message should be loud and clear. Cheer up and address this issue smartly.

Regards,
Bishu

Hi, Ramya,

Follow the policies. If no policy exists, frame it. You must have the ability to say NO for better administration. For example, state an audit objection at the time of dealing. Remember, no one is indispensable. This message should be loud and clear. Keep other persons in the loop; do not process alone. Ensure all his claims are certified and verified. Delay the process to unsettle him on the grounds of verifications. Never ask for any obligations from him. Doing so will weaken your stance. Do not be too prompt in entertaining him; this will convey the message that he is not special to you or the company. Cheer up and act smartly.

Hi Ramya,

What I think about this issue is that the policies about allowances should be very solid and, at the same time, much more understanding, especially regarding senior employees. Every allowance given to an employee, whether it be the most senior person in the organization, should be fixed and decided by the higher-level management. Importantly, it should be sealed once and for all. Please sit with your higher-level management, seal all the allowances, and ensure you will not face such problems again in your organization. Keep track of them and require the bill to be produced when claimed. Deciding all the allowances and sealing them will solve 100% of your problems.

Thanks and Regards,

Ravibhushan Pandav
Human Resources Officer
9970967623

I agree with the above comments regarding a fixed policy related to travel and reimbursement, but this must be strictly followed. For now, one can consult with a person in higher management who can tactfully influence the individual; if not, then start looking for a replacement.

Regards,
Nikhil Kujur

Dear Friends,

I was in a similar situation with marketing staff submitting bogus, inflated bills. Many times, meetings were not conducted, but expenses for the meetings were submitted. I devised a travel policy and set a maximum amount they can claim for food, lodging, and travel city-wise and employee category-wise. For lodging bills, verification was a must. I used to conduct random verifications with hotel personnel. Food expenses were allowed with flat claims without bills but within the maximum limit.

Management provided me with full support. Except for the occasional query in the audit, things are quite smooth now.

Regards,
Bhavan

I do not find anything wrong with the attitude of your technical person. He has been making claims and asking for concessions, and you have been allowing him to do that again and again. So, where has he gone wrong? In case he is wrong anywhere, you should tell him and reject his claims. First, make good rules/policies. Document them, communicate them, and follow them without favor or fear, and your problem is solved.

I feel management has failed in its duty of making policies, communicating policies, and implementing policies in this case.

Dear All,

As a senior HR head, I am facing some issues, kindly help me out. A technical person (2 years of experience) who is good technically but his attitude is very bad. For example, he gives a bill for petrol allowance from his home to the office if he works on Sundays. We have given lots of privileges (such as no LOP). If it is questioned, he tries to put in some other bill. Even though there is bus facility, he uses only auto and claims heavily. If I question all this, he shows it in his performance. Above all, this is poisoning other employees who are following his footsteps (this does not need to be taught).

Since it is a growing company, we as employees should help them in achieving their goal. I am not asking them to work freely, but I feel they should not cheat the company. I feel it is not fair. Need your suggestions.

Regards,
Ramya.

Hi friends,

I am the accounts assistant of my company where I process the tour claims of employees and at the same time process my own claim. Many times, we don't put ourselves in the other person's shoes. There are lots of problems a person encounters while on tour. Just two days back, I returned from a tour, and my senior person claimed an auto rate of Rs. 7/- per km for 50 km, totaling Rs. 350/-. In reality, he traveled by bus and spent only Rs. 17/-. However, during tours, there are many incidental expenses, especially in organizations where rates are fixed according to the city and employee grade. In such cases, employees end up paying more.

For example, in Chennai, even a 2 km auto ride costs Rs. 50, while in Calicut, it is only around Rs. 12-10. So, what can an employee do if the accounts person deems his Rs. 50 auto claim as false? The employee did spend the money, leading many to resort to falsifying records and impersonating others. Therefore, it is essential to establish a travel policy that does not disadvantage any employee.

Furthermore, try to understand why the person chose auto over the bus, despite the availability of a cheaper bus service. For instance, an AC bus ride from Broadway to Tambaram costs only around Rs. 30, while an auto ride can cost about Rs. 500. There must have been a reason for choosing the auto – perhaps client urgency or another valid reason.

Thank you.

I agree with Sriram; this is a common scenario in a growing company. But nobody is indispensable. So first, discuss with him individually based on the eligibility, and he is also one among all the employees. In the meantime, try to create a standard travel allowance based on various grades/designations you have in your organization so that he has to claim within his limit. Otherwise, the number will only increase. Take care.

Thanks & Regards,
Suganthi Nair

Establishing Clear Rules and Expectations

Rules should be simple and unambiguous. Stick to the rules. Tolerate no nonsense. This shall send a clear message to all employees.

RULES, RULES, RULES!!!!

Before labeling the employee as a culprit, listen to his views. It is possible that he is already receiving the benefits as per the pay package agreed upon between him and the boss. In companies like yours, this situation occurs frequently! Implementing policies that reduce his earnings may put you in an uncomfortable position later on.

Changes should always be made positively, aiming for a better future for both the employees and the employers.

Regards,
MG