Employer's Expense Policy

What is an Employer's Expense Policy?

An Expense Policy outlines the guidelines and procedures through which employees of an organisation can claim reimbursement for permitted business-related expenses that they incur on behalf of the employer.

An Expense Policy is important because there are times where an employee may need to spend money on items or transit that relates to their job. For example, work travel expenses.

 

What is the difference between an Employer's Expense Policy and a Reimbursement Policy?

An expense policy covers all types of business-related expenses, such as accommodation, travel, office supplies etc. A reimbursement policy may overlap with an expense policy but focuses on the processes for employees to claim back costs incurred on behalf of their organisation.

Also, an employer's expense policy can integrate into an organisation's broader suite of policies including Work from Home Policy, Social Media Policy, and Sickness Absence Policy. For instance, the expense policy can outline reimbursement costs for remote costs such as internet or phone usage, or office equipment.

 

Is it mandatory to have an Employer's Expense Policy?

No, it is not legally mandatory for an employer to have an expense policy, but it is highly recommended to aid clarity and fairness for employees, as relates the kinds of expenses their employer will cover and how they can claim reimbursement from their employer.

Who is involved in an Employer's Expense Policy?

This Expense Policy involves employees and the employer being either a company, a partnership or even a sole trader. It should be drafted for use where the employer's organisation operates in the jurisdiction of England and Wales.

Who cannot be involved in an Employer's Expense Policy?

Because the expense policy is tailored to the internal workings of the employer-employee relationship, it does not extend to:

• Contractors
• Consultants
• Casual workers
• Volunteers
• Agency workers.

What has to be done once an Employer's Expense Policy is ready?

Once the document has been completed, it can be printed and distributed to all employees (or workers) within the employer's organisation or added to the employer's handbook that contains all other organisation policies.

This policy has not been negotiated with the employees and as such the employer can alter its contents without need to discuss with the employee(s). It also does not form part of the employees' Employment Agreement. Where the employer is a company, the completed Expense Policy should be signed by the company's authorised personnel (usually the person who would be in charge of monitoring this policy). Where the employer is a partnership, it should be signed by all the partners.

 

What must an Employer's Expense Policy contain?

An Employer's Expense Policy must contain:

• An introduction outlining the purpose of the policy;
• Details on how to make a reimbursement claim;
• Complaints and queries procedures;
• Conditions for overnight stay for work travels;
• Telephone expenses;
• Date and signatures.

 

Applicable Law

Bribery Act 2010

Income Tax (Earnings and Pensions) Act 2003

 

Help from a lawyer

You can choose to consult a lawyer if you need help.

The lawyer can answer your questions or help you through the process. You will be offered this option when you complete the document.

 

How to modify the template?

You fill out a form. The document is created before your eyes as you respond to the questions.

At the end, you receive it in Word and PDF formats. You can modify it and reuse it.