EXPENSE REIMBURSEMENT POLICY
This Expense Reimbursement Policy (the "Policy") is issued by ________, a company duly organized and existing under the laws of the Republic of the Philippines, with principal office address at ________ (the "Employer" or the "Company"). This Policy establishes the guidelines that all employees ("Employees" or singularly an "Employee") must observe when incurring expenses in a work-related capacity.
This Policy is adopted pursuant to the Employer's exercise of management prerogative as recognized under the Labor Code of the Philippines (Presidential Decree No. 442, as amended) and the Civil Code of the Philippines (Republic Act No. 386). It governs expenses such as those incurred when Employees travel for work, host business-related meals, or purchase items required for work using their own personal funds. The purpose of this Policy is to ensure that Employees understand which expenses are covered and which are not, the conditions for reimbursement, and the responsibilities each Employee undertakes in relation to such expenses.
§ 1. Covered Expenses
1.1. The Employer shall generally cover work-related expenses incurred by Employees. Work-related expenses are defined as those that are directly, necessarily, and reasonably related to an Employee's performance of work for the Employer. Such expenses may either be paid directly by the Employer or paid initially by the Employee and thereafter reimbursed in accordance with this Policy.
1.2. Notwithstanding the foregoing, work-related expenses may be subject to maximum approved amounts or caps as the Employer may from time to time prescribe. In such cases, the Employee is advised to secure the prior written approval of his or her direct supervisor before incurring any work-related expense.
1.3. Reimbursements made strictly as a return of expenses advanced by the Employee for and on behalf of the Employer, supported by adequate documentation, are not considered compensation income subject to withholding tax, in accordance with the National Internal Revenue Code of 1997 (Republic Act No. 8424, as amended) and the relevant issuances of the Bureau of Internal Revenue.
1.4. Examples of work-related expenses that may be covered include, but are not limited to, the following:
(a) Travel Expenses. Costs incurred when an Employee is required to travel for work-related purposes, such as transportation (airfare, train, bus, taxi, or ride-hailing services), mileage when using a personal vehicle, parking fees, and toll charges.
(b) Accommodation Expenses. Reasonable lodging costs incurred when an Employee is required to stay overnight away from his or her usual place of work for business purposes.
(c) Meals and Entertainment. Reasonable costs for meals while traveling for work or when hosting business-related meals with clients, customers, or business partners.
(d) Office Supplies and Equipment. Items purchased by an Employee from his or her own personal funds that are necessary for the performance of his or her work-related duties.
(e) Communication Expenses. Work-related telephone, internet, and other communication charges incurred in the course of performing the Employee's duties.
(f) Professional Development. Costs for work-related training, seminars, conferences, and professional memberships approved in advance by the Employer.
1.5. Non-Covered Expenses. The Employer will not cover expenses that are personal in nature or not directly related to the Employee's work. These include, but are not limited to, personal entertainment, fines or penalties, personal travel, expenses incurred in violation of law, and any other expense not approved by the Employer.
§ 2. Requirements and Documentation
2.1. To ensure that reimbursable expenses are properly processed, Employees are required to maintain and preserve all documentation, including official receipts and sales invoices issued in accordance with the requirements of the Bureau of Internal Revenue. After incurring any expense, the Employee must submit the original receipts, together with any additional documentation requested (such as expense reports), to the Employer through the Employee's direct supervisor.
2.2. Employees are required to use the attached Request for Reimbursement form when submitting their claims for reimbursement.
2.3. All requests for reimbursement must be submitted within the following period: ________ from the date the expense was incurred. Claims submitted beyond this period may, at the sole discretion of the Employer, be disallowed.
2.4. The Employer shall process and release approved reimbursements within ________ from the date of approval of a complete and compliant request.
§ 3. Disciplinary Action
3.1. Any Employee found to have falsified documents, padded, or exaggerated expenses, or otherwise acted dishonestly in connection with any reimbursement claim, shall be subject to disciplinary action in accordance with the Employer's Code of Conduct and the procedures set out in the following: ________.
3.2. Any disciplinary action shall be undertaken with due observance of the twin-notice rule and the requirements of procedural and substantive due process under Article 297 (formerly Article 282) of the Labor Code of the Philippines and applicable jurisprudence. Such acts may, where warranted, constitute serious misconduct, fraud, or willful breach of trust justifying termination of employment, without prejudice to any civil or criminal liability under applicable law.
§ 4. Data Privacy
4.1. The Employer shall collect, process, store, and retain the personal and financial information contained in reimbursement requests solely for the purpose of administering this Policy and in compliance with the Data Privacy Act of 2012 (Republic Act No. 10173), its Implementing Rules and Regulations, and the issuances of the National Privacy Commission. Such information shall be retained only for as long as necessary for the stated purpose and for compliance with applicable accounting, tax, and legal requirements.
§ 5. Information Dissemination
5.1. All new Employees shall receive a copy of this Policy upon the commencement of the performance of their duties.
5.2. If this Policy is amended or modified, all Employees shall be duly informed of the amended or modified Policy.
§ 6. Amendment and Management Prerogative
6.1. The Employer reserves the right, in the reasonable exercise of its management prerogative, to amend, supplement, or revoke this Policy at any time, provided that such changes are made in good faith and are not contrary to law, morals, public order, or public policy, and are communicated to Employees in accordance with § 5.
§ 7. Governing Law and Venue
7.1. This Policy shall be governed by and construed in accordance with the laws of the Republic of the Philippines. Any dispute arising from or in connection with this Policy shall, after exhaustion of any applicable grievance machinery, be submitted to the appropriate competent authority or to the courts of ________, to the exclusion of all other venues.
§ 8. Separability
Lorem ipsum dolor sit amet consectetur adipiscing elit sed do eiusmod tempor incididunt ut labore et dolore magna aliqua ut enim ad.
§ 9. Effective Date
9.1. This Policy shall take effect on ________ and shall remain in force until amended or revoked by the Employer.
Signed and approved:
________
________
For and on behalf of ________
Date: ________
REQUEST FOR REIMBURSEMENT
Date: ________
Employee Name: ________
Employee Position: ________
Item 1
Type of Expense: ________ Date: ________
Reason or Purpose of Expense: ________
Vendor: ________
Amount: ________
Item 2
Type of Expense: ________ Date: ________
Reason or Purpose of Expense: ________
Vendor: ________
Amount: ________
Item 3
Type of Expense: ________ Date: ________
Reason or Purpose of Expense: ________
Vendor: ________
Amount: ________
Item 4
Type of Expense: ________ Date: ________
Reason or Purpose of Expense: ________
Vendor: ________
Amount: ________
Item 5
Type of Expense: ________ Date: ________
Reason or Purpose of Expense: ________
Vendor: ________
Amount: ________
Total Amount Claimed: ________
Lorem ipsum dolor sit amet consectetur adipiscing elit sed do eiusmod tempor incididunt ut labore et dolore magna aliqua ut enim ad minim veniam quis nostrud exercitation ullamco laboris nisi ut aliquip.
Please do not forget to attach the original official receipts and supporting documents.
Submitted by:
_______________________________
Employee Signature over Printed Name
Date: ________
Approved by:
_______________________________
________
________
Date: ________