It is vital to have a clear expenses policy so employees know what kind of business spending is allowed and you know for sure what they have spent. Your employees are entitled to be reimbursed, as long as their spending falls within the policy.
Your expenses policy must set out what spending is legitimate and what is not. It should describe what evidence employees need to show to support their claim, such as receipts, and whether they need approval or countersigning first.
You are allowed to set limits, such as a maximum cost for hotel rooms, or whether you use only one hotel chain or airline. You can also set limits on length of time before making a claim, so employees do not build up large expense claims over time.
If you make changes to your expenses policy, you have to let your employees know in writing. You can also ask them for sign-off, to prove they have read and understood the changes.
By enforcing the expenses policy in practice, employees are less likely to make false claims. Your disciplinary policy should say that, if any fraudulent or dishonest expense claim counts as gross misconduct, an employee can be instantly dismissed without notice (summary dismissal).
Employsure can advise you on writing a watertight expenses policy. For peace of mind, please call our 24 hour Advice Line now on 1300 651 415.