Any incorporate sector, employees, and professionals of a company are required to travel to various places for business purposes. Such business travels made by the employees of the company are usually financed by the company.
In simpler words, a company bears the expenses of corporate travel. In such a scenario, a legal document, i.e This agreement states the terms and conditions of the company with respect to the travel becomes mandatory for both the parties involved.
What Is a Corporate Travel Agreement?
This is a legal document made by the company mentioning the details and conditions regarding the business travel of an employee. Such corporate travel policy elaborates on standardized rules and regulations to be followed by the employee. In addition to the do’s and don’ts of conduct while traveling, this agreement also helps in cost management and tracking the overall travel expenses.
Who Takes a Corporate Travel Agreement?
A Corporate Travel Contract is signed between an employer and employee with regard to the business travel of the employee. This agreement elaborates on the processes and procedures, thereby saving the time invested in making arrangements for travel.
What Is the Purpose of a Corporate Travel Agreement?
Why do you need a Corporate Travel Agreement Policy? This agreement is created by the company for the business travel of its employees. The policies mentioned in the contract provide a clear idea of the rules and protocols that have to be followed by the employee during the travel and claim of expenses accordingly. This helps to avoid any dispute between the parties for the settlement of expenses of business travels.
[ Also Read: Reimbursement Agreement]
Contents of a Corporate Travel Agreement
The contents of an agreement have been mentioned below;
- Name and Address of the Company and Employee
- Date of the Agreement
- Duration of the Agreement
- The validity of the Agreement
- Terms and Conditions for renewal of Agreement
- Booking parameters (hiring of a corporate event planner)
- Accommodation guidelines
- Safety expectations
- Post-trip guidelines
- Payment terms and mode
- Terms and Conditions for termination of the Agreement
A corporate travel policy template also provides you a detailed view of the necessary inclusions that need to be incorporated in this agreement.
How to Draft a Corporate Travel Agreement
While drafting the agreement, ensure to
- Mention the Name and Address of the Company and Employee
- Mention the Date of the Agreement
- Mention Duration of the Agreement
- Mention Validity of the Agreement
- Details of Terms for renewal of Agreement
- Details of Terms and conditions of the Agreement
- Details of payment terms and mode
- Details of Conditions for termination of the Agreement
- Details of Remedies available if any in case of breach of Agreement
Generally, there is no such negotiation strategy implemented in an agreement as it is an agreement made by the company for its employees with the consultation of a lawyer. It is simply a terms and conditions document for the employees of the company for business travels.
Benefits and Drawbacks of a Corporate Travel Agreement
The benefits are that the company is legally bound to clear the expenses of the employee for business trips as incurred actually. However, the drawbacks are that the employee will have to adjust his expenses as per the terms and conditions of the agreement and cannot incur additional/unnecessary expenses.
What Happens in Case of Violation?
In case of violation of the Agreement on the part by the employee, the company will withhold the clarence of the expenses of the business travel. On the other hand, in case the company violates the terms and conditions of the agreement, the employee can sue the company and claim compensation for the loss suffered.
Today, most of the organizations across the globe seemingly adopt the implementation of the corporate travel agreement as it provides clarity on the rules and protocols that have to be followed by the employee during the travel and claim of expenses accordingly. Thus, it further helps to avoid any dispute between the parties for the settlement of expenses of business travels.
Sample for Corporate Travel Agreement
A sample of the agreement can be downloaded from below.
Download this USA Attorney made original Agreement for only $9.99