New HR Generalist Seeking Guidance on Drafting Expense Reimbursement Policy for Startup

Hi all,

My name is Vidya, appointed as an HR generalist. This is my first job. I need to draft a policy for expense reimbursement in our company. As this is a startup company, I have no senior-level managers to assist me in framing policies. Therefore, I kindly request any senior HR manager to guide me in creating the aforementioned policy.

Regards,
Vidya

Hi,

Reimbursement is in the sense of what type of expenses? Is it for fuel expenses, related to any purchases, or travel expenses reimbursement?

Dear Vidya,

Reimbursement of expenses or handling imprest cash are the matters of the Accounts Department. Therefore, if they release the policy, the better. Mention clearly in the policy the format of the voucher, who is authorized to approve the voucher, who will be the final signatory, how the audit will take place, when it will take place, and so on.

Thanks,

Dinesh Divekar

As required, please find attached the Reimbursement Form, which includes Conveyance, Telephone, Staff Welfare, etc. You can add or delete the heads as per your requirement. As rightly said by you, HR has to develop the formats and policies regarding employees. Subsequently, the accounts department will handle the payments. It is essential for you to be very specific and ensure the criteria, processes, and approval systems in the policy are well-defined to prevent misuse by employees. Your main task will be to formulate the Reimbursement Policy in a manner that enhances employee welfare while being cost-optimized. Wishing you good luck in your new assignment.

Best regards, [Your Name]

Reimbursement Policy for Employee Vehicle Use

As a company, management prefers to encourage employees to use their vehicles for attending official duties or business meetings, as it is sometimes not possible to provide company-maintained vehicles. This situation often arises for employees in HR, Sales & Marketing, Purchase, Taxation, Legal, and Admin departments. When resources and logistics are lacking and no alternatives are available, work suffers, and time is lost.

In designing a reimbursement policy, you need to consider two aspects. First, the user is using their vehicle, which undergoes wear and tear. Second, they are investing in fuel. You also need to consider policies for two-wheelers and four-wheelers. Here, you must specify the grades of employees eligible for reimbursement if two-wheelers or four-wheelers are allowed. Normally, for two-wheelers, it should be in the range of Rs. 5/km, and for four-wheelers, it may start at Rs. 8/km with the sanction of the approval authority.

Best wishes,

RDS Yadav Director, Future Institute of Engineering and Management Technology Labour Law Adviser [Email Removed For Privacy Reasons]

Understanding the Sales Process and Geography

Please understand the sales process, sales cycle, and target geography of the sales team member. You can suggest:

1. Having a fixed amount paid to the sales team as part of the CTC; this will save the hurdle of checking all bills and verifying visits, etc. You trust that the employees will use a comfortable mode of travel to visit the customer.

2. Fix limits for different levels and geography, and give limits for the use of personal vehicles for official purposes. Define the time for submission of bills and the payment of the reimbursement cycle.

Regards,
Vinu