Foreign travel policy for employees

A foreign travel policy (FTP) for employees is a high priority for organizations with employees traveling the globe for business purposes. It acts as a clear and simple guide, helping employees understand the nitty-gritty of expense reimbursement,

If your organization has employees traveling twice or more in a year, an effective foreign travel policy is crucial for offering a seamless experience to your traveling team members. Dive deep into what this policy should cover, the best practices, and more in this guide.

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What is a foreign travel policy for employees?

A foreign travel policy and international travel policy are used interchangeably at many organizations. The policy outlines different business travel aspects, focusing on employee experience, well-being, safety, and business budget. For example, a well-defined foreign travel policy for employees contains:

Companies with clearly established foreign travel policies for employees can easily prevent overspending and avoid fraudulent activities. Moreover, they can reduce hikes in travel spending while ensuring employees’ autonomy and flexibility during business trips and the booking process.

What to include in your foreign travel policy for employees?

The more detailed and streamlined a foreign travel policy is, the more seamless it becomes for your employees. When creating these policies, you must consider different business aspects to help both employees and finance teams.

1. Expense categories and limits

Listing expense categories and limits for international travel helps businesses to protect their financial health. Some of the most common international travel expense categories are:

Clearly communicate limits on specific expense categories so that employees are aware of permissible travel expenses during an international business trip.

2. Non-reimbursable expenses

A company may not cover certain expenses during the course of international travel. These are known as non-reimbursable expenses. Your foreign travel expense policy must mention the non-reimbursable items clearly.

3. Expense claim reporting policy

Expense reporting can quickly become a nightmare when you don’t follow standard operating procedures. Collecting receipts and logging all transactions during foreign travel isn’t exactly a walk in the park. That’s why businesses should have strong policies and procedures for reporting expense claims.

A well-defined expense reporting policy clearly mentions the business expense reporting process and documents necessary for claiming these expenses. It must address the most important aspects:

Employees may spend in foreign currencies while visiting other countries. Therefore, it’s necessary to mention preferred modes of payment (company credit card, cash, etc.) and ways to report expenses.

from employee expenses made in a VAT-related foreign country, make it the employee’s responsibility to provide proof of expenses. These documents will help you to comply with federal travel regulations and tax authorities during the verification process.

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4. International travel expense approval and reimbursement process

A detailed international travel expense approval and reimbursement policy helps your company to comply with IRS regulations, maintain costs, and efficient expense processing. This offers a single source of truth for all departments working on end-to-end travel and expense management. It also helps your employees to have an enjoyable business trip!

5. Safety and insurance policies

As an employer, you must safeguard the health and safety of your employees traveling to other countries for business. This means both you and your employer need to be prepared to handle unforeseen circumstances like car accidents, political violence, and natural disasters.

. This enables your travel managers to receive up-to-date, verified information on locations that are important to them and their team.

Including safety and insurance policies in your foreign official travel policy helps you to mitigate the risk of damage under such cases.

In addition, a company must clearly mention different types of insurances and their eligibility. Some of the most common insurances include personal accident coverage, employee benefits program, health insurance, employee compensation, and more.

For example, an employee injured abroad during a business trip may be eligible for different types of insurance. That’s why your policy must contain all insurance information, emergency contacts, tips on handling emergencies, and any other additional information you may deem fit.