Corporate Mobile Handset Reimbursement Policy: Guidelines and Best Practices

Dear seniors,

Can you help me with framing a common policy for the purchase of mobile handsets? I would like to cover the following points in the policy:

1. Price band
2. Eligibility
3. Mobile lifespan
4. Repair
5. Warranty/Guarantee
6. Brand
7. User handling

Deepali

Hi Dipali,

Honestly, what goes into framing and the number part should be discussed with your seniors.

It depends on the post of the person to whom you are giving the mobile. There are companies that give mobiles to their on-site employees to stay in touch and discuss the matter over the phone. Such people will need only a basic phone, and hence a minimum costing phone can be given.

On the other hand, say a CEO; he might need a smartphone to coordinate with different people, check emails even if he is not at the desk or traveling, need to update and check information and should be given a mobile accordingly.

Again, I would suggest that you do not include an amount in number and precisely. Put down the category of the phone depending on the position so that when the prices change, there are no discrepancies.

As discussed above, it would greatly depend on the industry you serve and the nature of your work.

An ideal lifespan of an electric item is 3-5 years, depending on the model and company. But a bare minimum of 3-5 years should be the lifespan.

The company should mention that if any data is lost due to any negligence on any of the employees, it would not be a good sign. Again, any damages caused due to mishandling of the phone would attract a penalty accordingly. If the damages are irreparable, the person will have to buy a new phone.

However, if the phone is not working for any reason beyond the employee's reach, the company will take suitable actions.

The company's decision will be final in case of any confusion.

Depends on your company's budget, and I believe you should discuss this with your seniors.

I think most of the caretaking things would be easily available.

Hi Dipali,

Though most of your queries have been aptly replied to by Ms. Ankita, I would like to add a few points from my end.

Regarding eligibility, the ultimate decision would rest with the departmental heads. However, employees would be given preference if:

1. They are handling critical departments.
2. Need to be contacted outside regular working hours.
3. I am not sure about your industry type, but there are employees who require it for communication through messaging services. For instance, in corporate hospitals, after a patient is given an appointment, the department sends details or important messages to the concerned patient.

Additional points to consider:

1. Returning the mobile (in fully functional condition) to the concerned department before leaving the company.
2. Monitoring usage (this may apply if you decide to pay for the bills). In this case, the bill summary might be scrutinized, and the employee may be required to pay for personal calls.
3. The company may decide to withdraw the mobile handset from an employee or a particular department. Therefore, employees should be informed that this is a privilege that can be revoked.
4. Instructions on where to report if the mobile is lost.
5. It would be beneficial to include do's and don'ts about usage. For instance, restricting usage in specific circumstances such as operating equipment or driving a vehicle.

Feel free to reach out if you have more queries.

Dear Member,

Fellow members have given apt replies to your query. I would just like to share some practices:

1. We do not provide handsets but provide an upper ceiling within which an employee is free to purchase the handset and get reimbursement.

2. The handset, therefore, belongs to the employee, and the question of loss, repairs, etc., does not arise.

3. The lifespan of a handset is considered as 4 years, and an employee is eligible to purchase a new handset again after 4 years.

4. If an employee leaves the services within the period of 4 years, the reimbursed amount is recovered during final settlement at the rate of 75% in the 1st year, 50% in the 2nd year, 25% in the third year, and 10% in the 4th year.

The advantage of such a policy is that the company does not have to take an additional burden of administering the mobile policy and end up with outdated mobile handsets as they can neither be reissued to new employees nor have good reselling value.

Hope this helps you in framing the policy.

Regards,

Preetam Deshpande