Expense Claim Policy

Overview

This document sets out the policy (and procedures) for payment and reimbursement of approved work-related expenses of employees at [the Company]. It has been developed to assist employees understand the rules and circumstances around incurring and payment of approved work-related expenses.

In general, [the Company] will pay for or reimburse staff members for ordinary, necessary and reasonable expenses that are directly connected with or pertaining to performing work for [the Company]. Two broad principles are:

  • employees are expected to exercise prudent business judgment regarding expenses covered by this policy; and
  • employees are neither to lose or gain financially from expenditure on behalf of [the Company].

This policy applies to:

  • meal and incidental expense claims;
  • entertainment expenses when connected with client work; and

miscellaneous approved work-related expense claims.

This policy applies to all employees of [the Company]. Only employee expenses covered by this policy (or expressly payable under other [the Company] policies) will be reimbursed by [the Company].

“Pre-approval” under this policy is when approval for a proposed work-related expense is obtained by an employee prior to booking of the event that incurs the work-related expense or prior to incurring the work-related expense.

Expense claim types

The following work-related employee expenses will be reimbursed by [the Company] as provided: [amend types of claims and procedure as necessary to meet your business needs]

Entertainment expenses

employees who have as part of their role the obtaining of business may incur expenses associated with marketing to clients, such as taking a client to lunch. Such expenses may not exceed the limits set out below and should be subject to pre-approval.

  • Lunch $ [insert reasonable amount] per head
  • Evening meal $ [insert reasonable amount] per head

Note that a proper tax invoice should be obtained. Any meal must be marketing-related and must not involve any person with whom the employee has a relationship outside work except with express approval. The ability to obtain business must be a key determinate for the entertainment involved.

meal and incidental expense claims

employees who stay back in the workplace after [insert time] [see note] are able to claim back reasonable expenses (provided also that the expenses do not exceed the appropriate amount specified below) for meals and incidentals. Any reimbursements over the maximum amount payable may be required to be paid by the employee.
Evening meal $ [insert reasonable amount]

late home travel expense claims

employees who stay back in the workplace after [insert time] [see note] will be reimbursed for reasonable expense claims covering taxi fare to their home adress.

All taxis should only be used where other forms of public transport are impractical or not cost effective.

Miscellaneous approved work-related expense claims

[the Company] will reimburse any other work related expense claims by employees provided they have been pre-approved by [insert person eg business unit manager] and deemed by [the Company] as reasonable.

Miscellaneous work-related expense claims without pre-approval

[the Company] will consider requests for reimbursement of any other work related expense claims by employees which have been incurred without pre-approval only where:

  • pre-approval was not reasonably possible because of the circumstances; and
    the expenditure is reasonable (as determined solely by [the Company]).

[insert name of person/business unit] has sole discretion to authorise reimbursement of expenses above maximum rates set by this policy, provided that authorisation is sought by the employee prior to incurring the expense and only if there are exceptional reasons for doing so.

Responsibilities

Employees are responsible for:

  • ensuring they understand and adhere to the policy;
  • acting reasonably in incurring work-related expenses;
  • providing all the relevant documents necessary (including a proper tax invoice), or otherwise required, to be provided in order for the proposed expenses to be approved;
  • ensuring they have pre-approval for proposed expenses where required by this policy; and
  • submitting approved personal expense claims using applicable company forms and following required procedure (refer further to clause 4.1 below).

Procedures

In order to receive reimbursement of work-related expenses referred to above, employees are required to complete the applicable expenses form [insert where this form can be found and/or amend name of form if necessary], attach a valid tax invoice or other required documentation as required [the organisation’s particular expense form should specify what documentation is required], and submit it to their manager for signing and forwarding to [insert name of accounts or finance team or manager] as soon as practicable.

Reimbursement

[The Company]’s commitment to reimbursement of an employee’s work related expense(s) is dependent on the employee following the correct procedures outlined in this policy, and in respect of expenses incurred reasonably in the performance of work related activities as covered by this policy.

Examples of expense claims that are unreasonable or are not otherwise authorised under this policy include, but are not limited to, the following: expenses claiming more matters not covered by this policy; excessive costs; and use of taxis for personal travel purposes or otherwise in contravention of this policy.

Non-compliance with policy

If an employee fails to adhere to the terms of this policy (including specified procedures) in seeking to have an expense claim reimbursed, the employee may not have their expense claim reimbursed by [the Company] and could face disciplinary action.

Free Expense Claim Policy Template

This free Australian Expense Policy Template will outline your organisation’s expense claim policy and help prevent issues by ensuring all employees are clear on the expectations.

By downloading this template, you agree to use it at your own risk and under your own legal advice. Nothing on this site should be considered legal advice.