Suspicious Receipt in Entertainment Claim: How Should We Address This Employee Issue?

There is a sales staff in my company who submitted his entertainment claim with a receipt without a date and time. The accounting department feels suspicious and calls the restaurant to check. The restaurant informs the accounting personnel in charge that the receipt was issued a few months ago, which does not align with his claim. Additionally, the restaurant even provides us with the actual receipt. How should we handle this case?

Dear Irenerene,

You may issue a show cause letter requesting an explanation about the actions taken by him in writing within the stipulated time frame. Once you receive a response from him, you can then decide on the necessary course of action based on the job requirements and the employee's responsibilities.

Thank you.

Hi Manoj Kamble,

Thank you for the comment. My concern is, can we show the actual receipt as proof when issuing him the letter of show cause? The receipt was obtained from the restaurant by my account department, pretending the customer requested the receipt.

Dear Irene, do you have a policy on claim settlement? If yes, have you outlined the procedure to settle claims, the process to be adopted, etc.? It appears that you do not have this policy. Had there been a policy, your accounts staff could have settled the issue on their own for not following the provisions of the policy.

At this stage, you may tell the Accounts Manager to return the receipt as it is without a date and time. However, while returning the receipt, let it be returned under the covering letter. In the covering letter, let me ask for clarification as to who was entertained, when entertained, and whether the entertainment had prior approval.

Upon receipt of the reply, check the facts to see if they tally with the confirmation obtained from the restaurant. If there is a discrepancy, then you may issue the show cause notice to the individual.

Lastly, please check the policy on claim settlement. If it merits revisions, revise it soon.

Thanks,

Dinesh Divekar

Handling a Fake Entertainment Allowance Claim

Apparently, this is a case of a fake claim for an entertainment allowance or bill. I am certain the company must have clear policies on how, when, and what to claim regarding entertainment for clients or business development. This claim by the employee indicates a lack of integrity.

However, before the company jumps to this conclusion, they should inquire with the employee about the lack of details such as time and date on the bill. The employee is required to provide a written clarification. Based on what the employee provides in writing and the documents the company has already collected, the next course of action can be considered. Proceed step by step and logically after obtaining the correct documents, clarifications, etc.