Hi,

In my company, we have set an 8 km radius. Anyone traveling to a site beyond 8 km in range from the actual office location is paid a certain amount. You could have a slab, depending on the usual distance of sites.

Regards

From India, Visakhapatnam
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Dear Friend,

It is always true that employees want to enjoy the fruits from the tree and also consume the ones that have fallen on the ground. Similarly, owners not only desire the fruits on the tree but also gather all those on the ground. It is when both parties insist on taking more than their respective fair share that we experience industrial unrest. Hence, in your case, the employee wants to travel to and from home to work/office at the company's expense, and employers aim to minimize the conveyance cost by denying the employee the benefit of gratis home-to-work conveyance covered by the company expenses. What is the fair share of this cost that the employee should bear from their modest salary, and what should the affluent employer bear? Is that right?

As an HR professional with over 30 years of experience, I suggest that you do some homework, i.e., calculate the cost of bearing the conveyance expense versus the cost of a work stoppage, the damage to the company's reputation due to a dissatisfied employee, the risk of the employee trying to offset the loss of conveyance reimbursement in other ways difficult for you to monitor, the additional manhours spent calculating daily distances traveled from home to office for each location, the impact on the employee's psychological well-being, and more.

I can assure you that the savings you anticipate will be significantly outweighed by the "costs" to the business overall. Think it over and then decide.

What should be done is not to revoke this benefit for all because a few may be exploiting it, but to identify and penalize those few wrongdoers as an example. If other employees object, ask them what they would prefer - a general crackdown on the benefit or their agreement to the punishment of the wrongdoers.

I hope you find my analysis of the matter helpful. The decision rests with you and your management.

Regards,
UG

From India, Bangalore
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We are a contractual company too, and we follow a policy that when we send a person directly to the site from home and do not require him to come to the office, we pay them full conveyance. On the day we require them to report to the office from home, we ask them not to charge for the distance traveled from their home to our office. Our employees are more than happy as they have to come to the office hardly one or two times.

Regards,
Maneesh Sanghi

From India, Delhi
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Hi,

We too have people out of the office at client sites for audit and consulting assignments. They don't come to the office most of the time. We have a policy of reimbursing travel costs from the deviation point, meaning the cost is provided from the point where he or she has to divert from his or her normal route. If the employee goes in a direction different from the way to the office, we pay the entire conveyance. If he has to travel a part of the way common to his office route, then that part is disallowed.

However, this is fair only if the person's posting location is fixed and doesn't change. And if it was known when the person joined. When we changed the office 2 years back, we asked each one to give details of differential travel costs and increased salary to that extent. You have to naturally ensure that the person gets pay that is worthwhile for him to travel to the office at his own cost.

From India, Mumbai
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Thank you, everyone, for the wonderful and logical suggestions. I am looking for more options. Please keep posting if you find some more ways to address this issue. Once again, thank you very much for your active participation. All of you are amazing.
From India, Delhi
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Durga, why don't you talk to your manager and convince him that if they can earn a few bucks, the policy should be proactive and positive to allow them to claim conveyance from home to the workspace and so on. In these days of high labor turnover, once you have raised this issue, you can talk to your unorganized labor and make it a point of motivation that you would be paying a conveyance allowance from home to the workspace. If the company happens to spend some amount here and there, it does not matter as a healthy HR policy creates a healthy workforce. Your employees will not try to manipulate and claim the actuals, which may be beneficial in the long run.

Think about this and act accordingly. I believe we need to come out of the conservative shell and think a bit differently to maintain the workforce.

From India, Bangalore
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Dear M/s Durga,

I can understand the situation as I have faced it many times when I was new. I have a solution for this, and you can contact me by mail. My email id is .

Thanks and Regards,
Viplolve

From India, Delhi
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Hello,

There are three options for you:

1. Deduct the amount or kilometers of the distance from home to the office and reimburse the remaining amount/kilometers. You can bifurcate them as per the designation if they vary.

2. You can tell your boss that if we go long, then we should always aim for a win-win situation. If we earn Rs. 100/- with the help of these people, then we should spend Re. 1/- for them. Yes, there might be a few people who take undue advantage of this, but we will get more good people whom we can trust.

3. If your boss declines the second option, then FIRE HIM.

From India, Bombay
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Hi,

I have a query. Most of the employees manipulate their travel allowance reports. I just want to know what kind of manipulations they can do. Generally, employees submit fake bills for hotels, food, and travel expenses.

Also, if two employees from different departments share the same room on a tour and both claim travel allowance (one with a bill and the other without a bill), how can we identify these individuals?

Apart from this, what else can they do? Please suggest, as my boss has asked me to work on it.

Regards,
Swati

From India, Mumbai
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Hello all, I am working in a Japanese company that has a warehouse in Greater Noida. We have around 20 contractual staff working in the warehouse for loading/unloading activities. All of them are unskilled workers. Since the staff come from different locations, we want to provide them with conveyance reimbursement as having a company cab will not be feasible due to mismatched routes. Based on their actual expenses, the cost is approximately 5000/- per person, which the management will not approve under any circumstances. Can someone guide me on how to create a conveyance policy for contractual labor? This is very urgent. The salary bracket for all the contractual staff is between 12000-20000 K.

Regards,
Yamini

From India, Delhi
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