What is Local Conveyance Policy?
A ready-to-use Local Conveyance Policy covering reimbursement rules and per-kilometer rates for official local travel, plus two free downloadable Word templates.
Download Local Conveyance Policy Template
Table of Contents
What is a Local Conveyance Policy?
Conveyance just means getting from one place to another, or the vehicle used to do it. A conveyance or transport allowance is what covers an employee's travel between home and work.
A Local Conveyance Policy sets the ground rules for that commute, and it's usually paid on top of basic salary. Whether it's taxable under India's Income Tax Act depends on how much the employer offers, there's no cap on what a company can provide, and it's sometimes grouped with other allowances like a special allowance. If the company already arranges transport for employees directly, this kind of policy isn't really needed.
More specifically, a Local Conveyance Policy covers how employees get reimbursed for travel expenses incurred while using public transport or their own vehicle for official work, and it lays out the approval, reimbursement, and control process for those expenses.
Standard Local Conveyance Policy Format
Here's a sample Local Conveyance Policy you can adapt for your own organization:
[Company Name]'s Conveyance Policy outlines the rules employees need to follow when commuting for official company visits or meetings, along with the approval and reimbursement process for travel expenses.
Purpose
This policy describes how employees qualify for travel reimbursement. The company expects employees to travel quickly and comfortably for business needs, while keeping spending reasonable.
Scope
This policy applies to all active employees, regardless of position or responsibilities.
Guidelines
- Field employees who travel for business use their own vehicle.
- Employees can also claim toll and parking charges by submitting receipts.
- Transportation claims should be submitted within [Number of days] days, using the Local Conveyance Claim Form in the Appendix.
Employees must wear a helmet when using a two-wheeler, and a seat belt when using a four-wheeler, for official travel.
Entitlement
Employees traveling for official purposes are reimbursed based on the table below. This doesn't apply to travel between home and the office.
| Mode of Travel | Reimbursement Limit (per km) |
|---|---|
| Four-Wheeler | [Amount] |
| Two-Wheeler | [Amount] |
Exception
Any deviation from this policy needs approval from the Head of HR. Management reserves the right to revise or discontinue this policy without prior notice.
Quick, Actionable Tips
- Who this policy applies to.
- What receipts employees need to keep for business-related travel expenses.
- The road safety rules employees must follow when using their own vehicle for office purposes.
- How reimbursement is calculated and processed.
- The Local Conveyance Reimbursement Form.