Local Conveyance Policy Policy

What Is Local Conveyance?

Local conveyance refers to the reimbursement provided to employees for travel expenses incurred during official duties within city limits. This includes travel for purposes like client meetings, site visits, training sessions, or official errands.

When Is Local Conveyance Applicable?

Employees become eligible for local conveyance reimbursement when:

• When they travel for work, they take public or private transportation.
• The travel is within the same city/town where they are based.
• It is approved by their reporting manager or department head.

This reimbursement typically covers:

• Auto-rickshaw fares
• Cab charges (Ola, Uber)
• Local train or metro tickets
• Bus fares
• Fuel expenses if using a personal vehicle (based on distance traveled)

Why Is It Important for HR?

For HR and payroll professionals, local conveyance forms a part of the company’s expense reimbursement management system. A structured local conveyance policy ensures:

• Cost control on reimbursements
• Standardized documentation for accounting and tax purposes
• Employee satisfaction, as they are not burdened with official travel costs

To automate this process and reduce administrative burden, organizations are increasingly adopting tools like Qandle’s Expense Management Software, which simplifies claim submissions, approval workflows, and payouts.

Streamline HR operations effortlessly with the best HR software solution

Get Free Demo

Local Conveyance Sample Policy

A well-defined local conveyance policy acts as a foundational document that outlines how employees will be reimbursed for travel undertaken within the city for official purposes. The objective of such a policy is to ensure clarity, transparency , and uniformity across departments when dealing with employee expense claims. An effectively drafted policy not only helps in maintaining employee satisfaction but also aids HR and finance teams in managing operational costs with proper documentation and control.

Organizations can modify this sample local conveyance policy based on their size, frequency of employee travel, and administrative capabilities.

1. Objective of the Policy

The objective of this policy is to establish a clear framework for reimbursing employees who incur transportation expenses while performing their job-related responsibilities within city limits. It aims to ensure:

• Treating every person fairly and consistently when they go locally for work
• Streamlined approval and reimbursement workflows
• Compliance with internal audit and financial control standards
• Cost-effective use of company resources

By laying down uniform rules, this policy helps minimize ambiguity and disputes in expense claims and supports budgeting processes for departmental travel expenditures.

2. Eligibility Criteria

The policy applies to:

• All full-time employees who are required to travel locally as part of their official duties
• Part-time or contractual staff only if explicitly authorized by their reporting manager or HR
• Employees attending meetings, training sessions, branch visits, or client interactions within the same city

Reimbursement will be considered only when the travel is necessary for business purposes and has been either pre-approved or later validated by a reporting manager.

3. Covered Modes of Transport

Employees may choose any of the following commonly used local transport modes:

• Public buses, metro, and suburban trains
• Auto-rickshaws and shared rides
• Ride-hailing services like Ola and Uber
• Personal vehicles (two-wheelers or four-wheelers) reimbursed at a fixed rate per kilometer
• Company-assigned vehicles (if applicable)

Fuel charges, tolls, and parking fees may also be reimbursed under predefined conditions.

4. Reimbursement Limits and Rate Structure

To ensure consistency and cost control, the policy defines reimbursement rates and daily caps. Examples include:

• Reimbursement for auto/cab rides based on actual fare with receipt
• Fuel reimbursement for personal vehicles calculated at ₹5/km for two-wheelers and ₹10/km for four-wheelers (subject to change)
• Daily reimbursement limit of ₹500 for junior staff and ₹1,000 for senior or field executives

Any reimbursement beyond limits must receive prior written approval from department heads.

These limits ensure fairness and help in managing budgets efficiently.

5. Required Documentation

For any reimbursement claim, the employee must submit the following details:

• Purpose of travel
• Date, time, and total distance or fare
• Origin and destination details
• Receipts (auto, cab, metro, bus) or self-declaration in absence of receipts
• Approval by the reporting manager

Claims without complete documentation may be rejected or returned for clarification.

6. Reimbursement Procedure

To simplify the process and reduce administrative overhead, companies are encouraged to digitize the reimbursement workflow. The process typically includes

• Claim Submission: Employee files claim through HRMS or reimbursement form, attaching relevant documents.
• Approval Workflow: Reporting manager reviews and approves or escalates for higher authorization.
• Finance Verification: The finance team checks for policy compliance and accuracy before processing.
• Disbursement: The approved amount is credited with salary or separately, based on the pay cycle.

7. Non-Reimbursable Items

The following travel-related costs are not eligible for reimbursement:

• Home-to-office and office-to-home commutes
• Personal trips or absences from work that are not related to official duties
• Fines, penalties, or speeding tickets during travel
• Luxury travel modes not justified by business needs
• Claims submitted without sufficient documentation or outside the defined timeline

8. Exceptions and Escalations

Any exceptions to the policy must be routed through the reporting manager and approved by HR or senior management. For disputed or unclear claims, employees can escalate to the HR department for resolution.

Simplify Reimbursements with Qandle. Manage local conveyance, travel expenses, and all employee reimbursements effortlessly with Qandle’s all-in-one HRMS and expense management solution. Book your free demo now to see it in action!