A business travel policy is likely to be quite lengthy because some of the issues can be complex. It should cover at least all the issues outlined in this overview. 

 

Contents of a business travel policy 

Make sure the following are included:

  • Introduction — states the aims of the policy, eg consistency, cost control, safety and comfort of employees. 
  • Responsibilities of employees — includes understanding contents of the policy, making bookings, controlling and checking expenses, providing documentation when required, maintaining work-life balance, considering the WHS implications of travel. 
  • Responsibilities of managers — includes approving travel proposals, checking their validity, considering alternatives to travel, checking and approving payment of expenses, ensuring compliance with policy, encouraging cost containment (eg by combining trips), considering the WHS implications of travel. 
  • Use of preferred travel service providers — many companies have contracts with external providers to handle all aspects of travel. There may be separate providers for air travel, accommodation and vehicle rental. This section of the policy should set out whom to contact in each case. 
  • Air travel — covers procedures and guidelines for booking airfares, choice of providers, class of travel, use of frequent flier points, scheduling changes that alter the fare payable, the maximum number of employees who may travel on the same flight. Note: Fringe Benefits Tax may be payable if the employer pays for an employee’s frequent flier program membership. 
  • Accommodation — covers procedures and guidelines for booking hotels, choice of providers, conference accommodation, room standard, what happens if booking cancelled or rescheduled. 
  • Meals and entertainment when travelling — includes payment, documentation and reimbursement of expenses, types of meals covered, cost limits for meals, types of entertainment covered. 
  • Vehicles — covers when to use rental cars, choice of providers, types of car used, insurance coverage and claims, use/misuse of vehicles, payment of expenses such as fuel, parking and fines. 
  • Taxis — covers when to use taxis, documentation and reimbursement of fares, use of Cabcharge. 
  • Public transport, private buses and trains — covers when to use, class of travel, documentation and reimbursement of fares. 
  • Use of corporate credit cards for payment of travel expenses — covers when to use, documentation and reimbursement of fares. 
  • Incidental expenses — includes telephone calls, internet access, laundry, tips, etc. 
  • Payment of expenses if an employee's partner or family accompanies him/her — includes when to use, payment, documentation and reimbursement of expenses. Note: Fringe Benefits Tax may apply if such expenses are paid. 
  • Travel insurance — includes how to arrange it, what it covers. 
  • Leave before or after a trip — covers procedures to follow if the employee wishes to take leave before or after a trip, thus extending the duration of travel. 
  • Breaches/non-compliance with policy — covers consequences, eg disciplinary action. 

Methods of reimbursement 

The following are the options for reimbursement of travel expenses: 

  • specific costs paid when the employee presents documentation of them 
  • payment of a travel allowance to cover both specific expenses and incidental costs 
  • direct charges to the employer via a corporate credit card 
  • an external travel provider manages all arrangements and bills the employer for services provided and travel expenses incurred. 

Travelling smarter 

There are increasing pressures on organisations to reduce the extent and cost of business travel, such as environmental and health-related issues. While various forms of technology can be used to achieve such reductions, it is also true that there are times when the face-to-face contact provided by business travel has significant benefits for the organisation and will be an investment instead of a cost. 

Despite the availability of technology, increasing ‘globalisation’ of business may actually make the need for travel more frequent – when public health conditions permit. The challenge for a business travel policy, therefore, is to balance these pressures by ‘travelling smarter’. 

This approach will require asking each time whether a trip is really essential, or whether the issue could be handled adequately by an alternative such as a webinar or videoconferencing. However, this approach does not mean that ‘do not travel’ should become the default position. If it can be shown that a trip is likely to result in a return on investment that exceeds its cost, or if it is likely to solve problems more effectively than non-travel alternatives, then trips should be permitted. 

The use of a preferred supplier arrangement is recommended if travel is frequent. Apart from the savings in in-house administration, a well-chosen supplier should be able to analyse the needs of the business and maximise access to available discounts and other cost savings. The supplier's industry knowledge should enable it to recommend policy changes to the employer. 

A preferred supplier will also have up-to-date information on issues such as travel insurance, current travel warnings, health checks, vaccinations and visa and passport requirements. 

Whether or not a preferred supplier is used, the travel policy should be reviewed at least annually, and any changes should be clearly communicated to employees. 

Using corporate credit cards for travel is gaining in popularity because employee transactions on the cards are transparent and can be easily checked and analysed for patterns. 

Compliance with travel policies should be consistently and firmly enforced, to the extent in many cases of non-payment for non-compliance.