Hi all,
Our expense section in contracts reads
EXPENSES |
You will be reimbursed for all reasonable travel, accommodation, entertainment, and other out-of-pocket expenses incurred on authorised business subject to the production of such receipts or other evidence of expenditure as may reasonably require and subject to obtaining Centre Manager’s approval. Travel expenses will not be paid for travel to and from your normal place of work. |
Over time (years) when individuals are allocated only 1 hour of work and live in excess of 15 miles away from the office have
- been paid either and additional hour
- or mileage costs
I am now looking to streamline this and only pay one of the above - the additional hour. I know I will get resistance to this change.
I am also not aware that everyone has a contract that has the above section in it.
We are also looking to change contracts for new employees in that if you work at a site less in distance to that of the main office you will not be entitled to claim any travel expenses.
Has anybody been through any similar experience or has any advice?
Regards
Ian
Replies
Hi Ian,
Are all employees on the same rate of pay?
You could face complaints of unfairness from those who are on a lesser hourly rate.
Regards,
Ruth
Thanks Ruth.
Rates are the same when providing the same work.
We are a counselling agency providing a number of different types of counselling specialisms.
Regards
Ian
Thanks Ian,
Why are you looking to streamline the process? Is it a cost saving exercise or to simplify things for the admin team etc?
Have you done an impact assessment? (Analysed the the difference is between the average milage claim and 1 hours pay? Will there be big winners and big loosers?)
Your reasons, how big the difference in cost will be and which way it goes (up or down), will impact on on how you need to sell this to your employees (and whether it's something you really want to do).
Ruth
If you have counsellors who do a lot of travel, could this make a big difference to their regular income?
Hi Ruth
We currently have 2 different ways in which to compensate and we would like to ensure everyone is able to claim in the same way. Some will win some will lose but it will be fairer and consistent. We re not talking huge sums of money.
We do need to make cost savings and I have inherited a number of inconsistencies that have accumulated over years that need to be addressed. It will also make it easier for our accountant when currently needs to know who claims mileage and who claims time.
Thanks Ian