Travel Policy: Human Resource Policy for Microfinance Companies

Purpose of policy:

This policy aims at providing reasonable comforts to employees to ensure the effective discharge of their duties while on official travel out of town

 Authorization for out of station Travel:

 The appropriate sanctioning authority as given below must approve all tour programs of the staff within the operational/support staff:

Head of the Department will authorize their own tour programs. They will send a copy of their tour programs and the MD will approve their tour expenses.

 Band and Grades

 Guidelines and Procedure:

1. Travel should be through shortest route and least fare available.
2. All lodging & boarding expenses are inclusive of taxes.
3. If personal vehicles (with prior approvals) are used the following reimbursement shall be made, on actual: –

• Car $_____ per km (Band 3 and above)

4. Change of mode of travel as per business requirements, where required, may be authorized by CXO only at all levels
5. Travel on tour, it is expected, will be restricted to what is necessary and consistent with business requirements. No travel will be undertaken without proper authorization. Needless to say every employee will endeavor to economize travel and other business expenses.

6. Taxi is to be used only for local conveyance and not as mode of travel for long/short distances. If need be, can be used for short distances but has to be approved by the reporting authority prior to the travel.
7. The modes of travel and entitlements have been fixed according to the level a person is in, and are Inclusive of luxury and entertainment taxes (even for the purpose of combined boarding and lodging). Spouse/Children are not covered within the travel policy.
8. All towns are classified under Metro, A, B or C category (list available with accounts)
9. Reservation charges, sleeper charges, travel agency charges and cancellation charges, if applicable any, up to approved limits will be reimbursed to the employee.
10. In case employees belonging to two adjoining levels are representing the company in an outstation assignment, then the mode of travel and Outstation Allowance to the executive belonging to the lower level would be that of next higher level only if they stay in the same hotel and not otherwise.
11. Each employee while submitting his claim through the Travel Expense Reimbursement Form (copy in annexure) will enter taxi fare/conveyance for each occasion separately indicating the starting point and destination.
12. For employees who are traveling together, it is advised to choose lodging on a twin-sharing basis. In this case, any one of the employees is eligible to claim for lodging allowance.

Travel Advance

1. Employee on tour will apply for travel advance to the line accounts departments at least 3 days prior to the date of travel. Details in Table 6

Conveyance Allowance

1. If any journey was made with another employee, only either of the two should make the claim for reimbursement
2. The company will not reimburse conveyance expenses incurred on personal trips.
3. Payment would be done for To and Fro fare from hotel/residence to railway station/airport/ bus stand- as per the cadre

Settlement

1. All employees will submit Travel Expense Statements for approval within 7 days of their return from the tour. The unutilized balance from the advance taken, if any, should be refunded to the company.
2. No second advance will be given unless the first advance taken is settled.
3. Original bills have to be submitted to claim lodging, travel and other expenses. ]
4. If Managers who are based at HO, and who do not require frequent travel, the purpose of their visit has to be clearly mentioned and approved by his/her reporting authority.

 Reimbursement for Local Travel:

1. The photocopies of logbooks maintained should be approved by Branch Manager and submitted to accounts for payments in case of field staff and respective Department Head/ Managers in case of Head Office.
2. This reimbursement for the vehicle fuel would be done as per the following criteria:

• CAR:  $____ per km
• Two -wheeler:  $_____ per km