Corporate travel has become a necessity for companies that want to grow amidst a scenario of globalization and networked communication. However, for them to bear fruit, every detail of the experience must be thought of to provide comfort for the employee and security for everyone.
But what to do when the employee travels with a Private Chauffeur Service in Istanbul? Would this be an interesting procedure for the company and for the traveler? How to pay for the trip, in these cases?
Choosing reimbursement or advance payments, the company’s budget, as well as employee safety, must be respected. To understand how to deal with this type of situation, follow the tips that we have prepared below!
What are the rights and duties of an employee on corporate travel?
Using your own vehicle on a corporate trip brings a series of advantages and challenges for the employee and for the company. Understand the rights and duties of the employee in these situations!
Fuel expenses
We find the rules on the vouchers. There, it is established that the company must provide it to the employer in advance and that the covered section must be carried out by public transport. Thus, companies are under no obligation to bear the costs incurred by their employees when refueling their own used vehicle on the way to work.
However, the situation for a corporate trip that requires the use of that particular vehicle is somewhat different. The same law establishes that, if the employee needs a private vehicle to carry out their professional activity and the company does not have a vehicle to do so, it must be responsible for this cost. Also known as the Consolidation of Labor Laws. In it, it is established that the employer should assume the risks of economic activity.
Even so, if there is no agreement between the employer and the employee for the use of their own vehicle to carry out the work tasks, the company is not necessarily obliged to bear fuel costs or damages, as we will see below. This is an issue that still generates discussions among legal experts.
As there is no obligation for the company to pay the costs of those who decide to use their own vehicle to go to work or travel, many employers choose to pay for fuel to strengthen the relationship with employees and provide more convenience. For this, they offer the fuel voucher or the amount estimated during the trip planning.
Vehicle depreciation costs
The use of the vehicle causes long-term damage. Also, all cars are subject to accidents and damage along the roads. As we have seen before, company spending on private vehicles in cases where they are not the only alternative for carrying out a professional activity still generate discussions among specialists.
In judgment of a similar case , the Superior Labor Court ruled that the employee could only be compensated for damages to the vehicle if the company did not have a car available to perform the tasks and if it gave permission to use the private car. In any case, it is recommended that the employer and the employee make a formal agreement. Thus, the relationship between the company and the employee is not strained by lack of knowledge about responsibilities.
In addition, if the vehicle is needed by the company, it is good manners for it to assume responsibility for any damages. After all, she is benefiting from using her private car.
Overtime pay
Labor laws do not set clear guidelines for overtime spent traveling for work. For employees who have an agreement and control of working hours, the company must pay overtime. For those who do not have workload control, it is not mandatory to pay for hours worked in excess.
To facilitate understanding of the issue, just follow the following formula: as long as the employee remains at the company’s disposal, his hours must be paid. Therefore, the hours that the employee spends traveling need not be considered as overtime if they are within the scope established by the contract.
How does the refund policy work for an employee traveling with a private car?
Has your company opted to reimburse the employee for using their own car? Some precautions are essential to ensure that this decision cooperates with your company’s objectives and does not cause friction with the employee in case of unforeseen events. After all, any damages that occur to the vehicle during the corporate trip are also the responsibility of the company, especially when it requests that the private car be used. Find out how to proceed with our tips below.
Set limits and deadlines for reimbursement
If your corporate travel policy does not yet have items related to refunds, it’s time to take care of that. Set a limit on employees’ spending so they understand what your company’s burden is.
Another essential item is the deadline for reimbursement. As we have already recommended in our blog , the ideal is that the period to reimburse the worker is not long, because when he takes money out of his own pocket, he may need this amount. Always remember to instruct your employees to use an expense control system, capable of storing invoices and facilitating the preparation of financial reports.
Formalize an agreement
To ensure compliance with the employee’s rights and duties, you cannot be satisfied with verbal agreements. Even if there is a lot of trust between the parties, a formal agreement brings more security to the transaction and prevents your company from eventual losses.
Consult your legal department or an industry service company to develop this document. The rules defined there must be clear and aligned with the company’s corporate travel policy.
Insure the vehicle
A good way to save on expenses is to include the employee’s private car in company insurance. In case of accidents, such as theft and accidents , your company avoids losses and guarantees assistance so that the employee can feel calmer.
Even though it is more comfortable for the employee who travels with a private car, it is highly recommended that you evaluate this choice with the employee. With a rented vehicle or a company vehicle, you have more control and possibilities to act in case of incidents such as theft and damage and avoid legal problems, as well as the strain on the relationship with the employee. In any case, count on the legal advice of an agency specializing in corporate travel to extract only positive results from this experience!
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