Understanding Driver's Wages on Business Trips with Directors: What Do Labor Laws Say?

Kindly clarify the company's drivers' wages policy if he went on a business tour with the company's director as per labor laws.

There is no labor law to support your query. As per the law, whatever wages are fixed are payable to the driver. As long as the said wages are not less than the statutory minimum wages, the employer is deemed to comply with the requirements of the law.

Daily Allowance for Drivers on Business Tours

However, to accommodate his expenses in connection with staying outstation, an amount will be fixed as a daily allowance or bata. Normally, the driver will not share the room of the director but will stay outside the hotel where the director stays. In good hotels, however, arrangements to accommodate drivers of the guests will be available. The cost of it will be reflected in the bill of the guest. If that is not available, the driver should be compensated for the cost incurred. Either the actual cost in a C class hotel or a fixed amount as a daily allowance will have to be fixed per day of traveling outside the city. This should compensate for his food expenses and rent. You can check the eligibility of your traveling salespersons and fix an amount for drivers also.

Hi Shiv, It seems like you're asking about clarification regarding a company's wage policy for employees who go on a business tour along with the company's director, in accordance with labor laws. However, the specifics can vary based on the company's policies, jurisdiction, and the nature of the business tour. It's essential to consult your company's HR department or refer to the employment contract and company policies for accurate information.

General Considerations:

Travel Time Compensation: Depending on the nature of the business tour, employees may be eligible for compensation for travel time. This can include time spent in transit, attending business meetings, or participating in work-related activities during the tour.

Expense Reimbursement: Employers typically cover expenses related to business tours, such as accommodation, meals, and transportation. The company's policy should outline what expenses are reimbursable and the process for submitting reimbursement claims.

Overtime and Additional Work Hours: If the business tour involves working beyond regular hours, employees may be entitled to overtime pay or compensatory time off, depending on the applicable labor laws and company policies.

Per Diem or Allowances: Some companies provide a per diem or daily allowance to cover incidental expenses during a business tour. This is separate from reimbursement for specific expenses and is intended to cover miscellaneous costs.

Communication of Policies: The company's wage policies and any variations for business tours should be clearly communicated to employees. This information may be available in the employee handbook, employment contract, or other relevant documentation.

Compliance with Labor Laws: Employers must ensure that their wage policies comply with applicable labor laws. Different jurisdictions may have specific regulations regarding compensation, working hours, and business travel.

It is crucial for employees to be familiar with the specific policies and terms outlined by their employer. If there is any uncertainty or if specific details are not covered in the company's documentation, seeking clarification from the HR department or management is advisable.

Thanks,

With all due respect to Dr. Raghunath, I would like to say that provisions regarding overtime payment will not be applicable when an employee works for more than the prescribed time outside the boundaries of a factory or establishment. If a driver is allowed overtime, he would never reach the office back within 8 hours! Similarly, if a salesperson is granted overtime wages, they would never complete their visit within 8 hours. There are court interpretations stating that overtime does not apply to work outside the plant or office.

Hi, If your organization follows a Tour Policy, either a Tour allowance or Deputation allowance should be paid to the driver in addition to their salary for outstation travel.