Please note that
the employee sent on a business trip has the right to choose accommodation /
lodging place. He may decide it on his own if it is not agreed in advance with
the employer, for example, discussed in the Business Trips Procedure or in
another company's local document. Often there are cases when, upon returning
from the business trip, the employee submits to the employer documents
justifying accommodation costs, which contain bigger amounts than the employer
expected. Number of disputes between the employers and the employees over the
validity of such costs is increasing in the courts. In such cases the court
evaluates the facts and states that if the employer and the employee did not
agree in advance on what premises the employee will live in and what
accommodation price will be, the employer must compensate all such expenses
upon submission of documents confirming the costs incurred by the employee.
In order to avoid this type of disputes with the employees, it is recommended to have an approved Business Trips Procedure, which would clearly set out the procedure for business trip formalization, the calculation / payment of daily allowances, reimbursement of business trip expenses and other important aspects. The employees have to be acquainted with the approved Business Trips Procedure by signing and this Procedure applies to all employees equally.
Leinonen can help you prepare Business Trips Procedure and advise you on this and related matters.
Please contact us:
Tax and Legal Manager
+370 618 79158