Remuneration is the result of an employee- employer relationship. Total remuneration will be split into certain components like basic salary, dearness allowance, house rent allowance, conveyance allowance, telephone allowance, education allowance, medical allowance and so on. Sometimes, certain elements of salary will be paid as reimbursements, like, instead of conveyance allowance fuel reimbursement, for telephone allowance there will be telephone reimbursement, for medical allowance we can pay medical reimbursement etc on production of bills in original. This arrangement is available so long as the above said employee employer relationship exists. That is why the reimbursements are taken prorate for the month in which the employee joined and for the month in which he leaves, or simply it is available in full for the days for which there existed employee employer relationship.
If we analyse the purpose for which each component of salary is paid, we will find that each is related to employment. For example, if conveyance allowance which is an allowance forming part of salary, is paid to the employee to meet his travelling expenses from his residence to office and back, should we pay it if he has not come to office? If telephone allowance is paid to recoup the expenses he incurs by making official calls from his personal telephone should it be paid he has not made any official calls during a month or part of the month? If medical allowance is paid as part of salary it is paid to care of himself being employed and will it be paid when he has not worked? We will not pay it because these are allowances forming part of salary. But when it comes to reimbursements, it is not actually limited to travel to office or making official calls but you are getting it for your personal travel (fuel reimbursement) , personal calls or medical care of family and all these are available so long as the employee- employer relationship exists.
But the main problem comes when the employee is absent or on leave without pay for the entire or substantial period of the month. In such a scenario, claiming the reimbursement alone will not hold good just like claiming salary for the off days and holidays intervening a whole range of leave without pay. If we view in that direction, why can’t we say that reimbursements should also be paid prorate if there is no pay days? This is an outcome of the thought that on days without pay there exists no employee employer relationship!! It is just a thought, please share your views.
Madhu.T.K