OVERVIEW:
This business travel, meeting and
entertainment policy applies to all significant entities within our group of
companies. In the application of this
policy at the subsidiary levels, corporate titles should be replaced by the
equivalent position titles in the subsidiary.
Travel arrangements, including air travel, hotel
accommodations and vehicle rentals
are to be made through the appropriate travel administrator in the employee’s
office of work.
There
will certainly be incidents that arise that have not been addressed in this
Policy. The Company expects its
employees to use good judgment in making determinations in any unforeseen
circumstance.
OBJECTIVE:
Any business travel, meetings and entertainment is to be consistent with the needs
of the Company and should be
approached in a cost efficient manner.
SCOPE:
The Company will pay the
cost of all travel and entertainment
expenses that are reasonable and
therefore deductible as normal business expenses for income tax purposes that
are incurred when an employee is traveling on authorized Company business. The Company will pay for reasonable personal
phone calls incurred when an employee is traveling on authorized Company business. The Company will not reimburse the employee
for expenditures that are lavish or extravagant.
POLICY:
General
1.
All travel
reservations and bookings are to be
arranged through the travel administrator in the employee’s office of work.
2.
On return home
employee is to report expenses and
advances on the appropriate travel form, with all original receipts attached,
within 30 calendar days. All receipts
should detail the charges.
3.
Air travel is by
Economy Class unless the circumstances listed hereunder justify a different
class of travel:
a.
Employees may fly Business
Class for flights that are of three hours or longer duration. This criterion is to be applied to the total
travel time per travel day (e.g. more than one leg to the trip – first leg is 2hrs,
second leg – new flight - 2.5hrs for total 4.5hrs – may fly Business Class).
b.
Employees may only
fly First Class if Business Class is not available on flights over three hours
however, only if approved in advance by a member of Senior Management.
c.
All Directors of the
Company may fly Business Class for any duration of a flight.
4.
Project or Subsidiary
specific air travel and hotel
booking procedures will take precedence over this policy for any employee
attached to said project or subsidiary.
Travel Restrictions
The
frequency of travel for business purposes will, on occasion, give rise to a
situation where several individuals are scheduled on the same flight. To ensure there is continuity of the
Company’s operations, senior personnel are to observe the following travel
guidelines:
a.
No more than two (2)
direct reports to the President and
CEO and no more than one key
executive from any one Division of the Company are to travel in the same
aircraft or ground transportation vehicle at one time (e.g. President and CEO plus one direct report may travel together
or two senior personnel, excluding the President and
CEO may travel together).
b.
Under no
circumstances will the Company reimburse an employee for more than the actual
fare paid for the employee to travel.
For instance, if an employee is entitled to fly Business Class and decides to fly Economy Class for any reason
(e.g. should a spouse accompany the employee on the same flight or to combine a
personal flight with a business flight) the Company will only pay the economy
fare for the employee.
c.
Gifts of air travel
tickets received from suppliers may not be accepted for use by an individual
employee and are to be turned over
for use by the Company.
Spousal Accompaniment
Spousal/domestic
partner travel and expenses will be
reimbursed only if the spouse/partner is required to attend an event and it is approved by a Senior Officer of the
Company, in writing, prior to the trip.
Due
to possible tax implications for the Company and /or
the employee, it is imperative that if a spouse/partner does travel at the
expense of the Company, all expenses, appropriate authorizations and business reasons for requiring the spouse/partner
to accompany the employee must be documented and
forwarded to the accounting department.
Frequent Flyer
Programmes
As
the ultimate value of frequent flyer awards cannot be determined by the
Company, nor usage monitored, such “travel points” accumulated by employees are
considered the property of the employee.
Employees are expected to make travel arrangements that make the best
business sense and not with a view
to maximizing travel bonus points.
Accommodation
The
reasonable cost of hotel accommodations and
services (e.g. laundry, internet) incurred while on business is reimbursable.
1.
Many of the major
hotels have three classes of service available.
With the following exceptions, all employees are expected to use the
“regular” accommodations:
a.
All Directors may use
first class accommodation.
b.
Vice Presidents and up may use the business class accommodation and when unavailable may upgrade to first class
accommodation.
c.
When justified, the
executives noted in point 1.b. above may authorize upgrades in accommodation
for their subordinates.
d.
When lodging is
provided without charge by an employee, business acquaintance, friend or
relative, a reasonable appreciation gift to the host or hostess is appropriate.
Automobile Travel
The
employee’s safety and security is
important to the Company. Employees are
responsible for determining the most effective means of transportation in
cities they are traveling to. Travel in
certain jurisdictions may justify traveling in a mode of transportation that is
more expensive than other modes. For
instance, travel in a hotel limousine may be preferable to a general taxi when
an employee is not familiar with the local language or where employee safety is
a concern.
All
employees traveling by automobile, whether in their own vehicle or a rental
vehicle must wear seatbelts and
further, they must ensure that they and
any passengers traveling with them adhere to all traffic laws within their
jurisdiction of travel.
When
an employee uses their own vehicle to travel on Company business, they will be
reimbursed at the rate of C$0.50 per kilometre for the first 5,000 kilometers
and C$0.44 cents thereafter. It is
expected that the employee carry their own vehicle insurance coverage.
Vehicle
Rentals
1.
Vehicles may be
rented by employees when other means of transportation are unavailable, more
costly, less convenient, or where personal safety and
security is a consideration.
2.
Employees should
choose the least expensive vehicle type to meet the transportation requirement.
3.
The size of the
vehicle to be used is dependent on personal safety considerations and the number of people traveling together, however
an employee should not request a car smaller than intermediate size.
4.
Employees should
accept the Third Party Liability coverage when renting a car on a business
trip, however you should decline all other insurance coverage as the Company’s
insurance policies provide the necessary coverage. If the employee is traveling with their
spouse/partner, the employee is personally responsible for all insurances for
the family member.
Taxis
1.
Taxis may be used for
transportation to and from airports.
2.
When an employee’s
job responsibilities require that they work in excess of three hours outside
their regular working hours, taxis (where personal safety is a concern) may be
used for transportation home. In addition,
managers may allow employees to use taxis for transportation home if public
transport is not a practicable alternative or if the personal safety of the
employee is a consideration.
Meals and Entertainment
Employees
will be reimbursed for actual meal expenses incurred that are reasonable and not excessive when the employee is traveling on
Company business or when overtime work is required and
it is unreasonable for the employee to go home for a meal and return to work.
Employees are expected to be prudent in their meal and entertainment purchases, including purchasing and consuming alcohol.
Reimbursable
entertainment expenses must meet both the following criteria:
1.
There is an
expectation that entertainment will result in some specific business benefit;
2.
There is a substantial
business discussion before, during or immediately following the entertainment
event.
Value Added Taxes
Employees
traveling in foreign countries should be aware that value added taxes are
frequently refundable. Refund forms
should be obtained prior to leaving the foreign country and
filed after the trip expenses have been approved. The refund of all value added taxes is to be
returned to the Company.
