Re-imbursing employees expenses - alcohol?

Karen Cole

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Jul 24, 2008
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Hi,

I am the accountant for a small but rapidly growing private business.

We have always re-imbursed our employees travelling and subsistance expenses while staying away for business. Historically, although our starter pack included a policy that alcoholic beverages would not be repaid, it has never been enforced.

However, with a workforce that has gone from 12 to over 50 in less than 2 years it is now becoming a serious issue. We have updated our policy and now offer to cover the costs of '2 standard alcoholic drinks as long as they are puchased with a meal'. Obviously they can have more drinks than this, but only 2 will be repaid.

My question is a mix of ethical and legal responsibilities for the employer.

There has been a lot of news recently regarding the increased size and strengths of alcoholic drinks in relation to the number of units consumed. Essentially one pint of a stronger beer can actually be as much as 3.5 units - 2 pints being 7 units. The recommended daily consumption rate is 3 to 4 units for men. If our employees are away say 2 weeks every month, and have 2 pints pretty much every night (that we are reimbursing and have the receipts for) - do we not have a responsibility regarding their health?

In addition, if there should be an accident of any type while they are away and they are found to be over the limit - where does that place us as the employer who paid for it? (Or some of it if they had more than 2 drinks).

I have tried to look at other cases like this on the internet but have found surprisingly little - most companies use a 'no alcohol' policy or allow it only by authorisation of line managers. I would like us to use this as well, and think that the answers to these questions may help in obtaining this.

Any help, comments or links to relevant information will be greatly appreciated.

Thankyou.
 

Karen Cole

Free Member
Jul 24, 2008
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Agreed - thats what I'm hoping for. However, I'm only the accountant and not the one in charge of policies, hence seeking 'proof' of potential problems.

I'd like to present a serious argument, backed up with as many resources as possible!
 
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Tim R-T-C

Free Member
Mar 19, 2008
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The North
An interesting point you raise about the legal responsibilities. It is very hard to gauge how a court would react to a case like that and as far as I know there is no legal precedent (try asking on the legal forum - someone there will probably know).

Refusing to reimburse alcoholic drinks entirely would be the best option, but doubtlessly unpopular. Perhaps a solution would be to offer a set amount to cover drinks either alcoholic or not (eg. £10 or 15% of the cost of the meal whichever is greater) thereby avoiding any reference to alcoholic drinks at all.
 
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Karen Cole

Free Member
Jul 24, 2008
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Thats something else I have considered, and probably my second suggestion if I can't encourage the powers that be to enable a 'no alcohol' rule.

However, I think it has additional taxation rules and the majority of these expenses are actually on a company credit card , so it would mean changing our current systems quite a bit.
 
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becker

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Jan 2, 2007
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Gloucestershire
Something you could use as a reference point.



One of the biggest consultancies and out-sourcing companies in the UK (pm me for name) has the following policy for most of its 'professional' grade employees.
  • Up to £30 for an evening meal, including reasonable drinks served with the meal.
  • Up to £5 for personal incidental expenses (e.g. newspaper, occasional phone call home).
These expenses can be either charged directly to the company via the hotel bill, or claimed back if dining outside the hotel.

However, this is backed up by an alcohol poicy

"It is a requirement of the company that no employee or contractor shall report or endeavor to report for work in an unfit state due to the influence of any illegal or intoxicating substances."


Hope this helps?
 
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T

TotallySport

If your looking for a reason to ban acholol then do some research into how long the acholol takes to level the body after the average number of drinks per night people are drinking, if they are still intoxicated in the morning then ban it!!

The problem is people will simply get receipts which state the payment was for an evening meal and not itemised.
 
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Karen Cole

Free Member
Jul 24, 2008
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These employees are often away from their homes several weeks each month, stuck in a hotel so what else should they do? Having a couple of drinks is seen as a perk to compensate them, and is why it has been allowed. The potential problem is when a couple turns to a few or more and may lead to still being intoxicated the following morning when they are working, or is seen to be excessive for their health by being regularly over the recommended limits.

I would hope that as we do not 'force' our employees to drink that we are not legally responsible for any such issues, but I am worried that by reimbursing expenses known to include alcohol, we are seen to be 'encouraging and supporting' it - and that may make a difference in any legal issue.

I would point out that I don't class it as entertaining though, as its just the employees, and not clients / customers.
 
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MartCactus

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Sep 25, 2007
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London, England
These employees are often away from their homes several weeks each month, stuck in a hotel so what else should they do? Having a couple of drinks is seen as a perk to compensate them, and is why it has been allowed. The potential problem is when a couple turns to a few or more and may lead to still being intoxicated the following morning when they are working, or is seen to be excessive for their health by being regularly over the recommended limits.

Surely you'd deal with this under existing disciplinary procedures?... if an employee is unfit for work due to drinking too much (whether on his buck or yours) then that is a disciplinary matter.
 
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