How to formalize the traveling nature of employees’ work

Last modified: January 2021

When the specifics of an enterprise’s activities require frequent movements of employees to solve assigned tasks, the problem of optimal organization arises so that the traveling nature of the work does not slow down the work process with additional reports and approvals. When hiring a new employee whose position requires frequent travel, it is worth immediately fixing the terms in the contract and other documents, establishing the rules for compensation and accounting for movements.

Legislative norms

The need to indicate in the contract with a subordinate the conditions of work of a traveling nature is stated in Art. 57 Labor Code of the Russian Federation. Establishing the traveling nature of work as an integral part of a person’s permanent activity frees one from the need to register each fact of the trip. A similar rule is fixed in the provisions of Art. 166 of the Labor Code.

To find out whether it is appropriate to mention traveling work in the clauses of the contract, we proceed from the provisions of the Labor Code defined in Art. 168.1.

The content of the article explains when employees have the right to count on compensation for travel expenses made as part of their work duties:

• regularly on the road;
• frequent travel outside the office;
• field conditions;
• participation in expeditions.

The same article establishes the obligation to properly formalize the rules of a special work regime, with a list of positions that require frequent travel being fixed in the collective agreement and internal regulatory documents. Despite the lack of clear criteria for traveling, it is customary to define what traveling work is by the presence of distinctive features.

Employment contract for traveling work

The employment contract must indicate the nature of the work - traveling, as well as prescribe compensation for it or a reference to the Regulations on the traveling nature of the work, in which it is defined. Art. speaks about this. 168.1 Labor Code of the Russian Federation. The decisive factor for determining the nature of the work is not the position, but the labor function of the employee. So, a courier driver has a traveling job, but a forklift driver who does not travel outside the enterprise does not.

Compensation for the traveling nature of work is the responsibility of the employer. It should be reflected in settlements with personnel and appear as a separate line on pay slips. So its presence can be proven. The amount of additional payments is set by the employer; as a rule, it is a monthly fixed amount. At the same time, it is not subject to taxes, which can reduce the overall tax burden of the employer (paragraph 11, paragraph 3, article 217 of the Tax Code of the Russian Federation). Therefore, if the organization has a traveling nature of work, the employee’s contract must reflect this information.

In general, the contents of the contract are standard; only clauses about the nature of the work and the procedure for additional payments for traveling work are added.

Sample employment contract for those performing traveling work

Distinctive characteristics of the traveling nature of work

To determine the traveling or mobile nature of work, differences must be sought in the regulations established back in Soviet times. With a mobile nature, frequent movements are provided not for an individual employee, but for the entire enterprise, when hired personnel work away from their place of permanent residence.

If the work is of a traveling nature, then the job description instructs the employee to make constant trips, not due to the occurrence of some events, but for the purpose of performing the duties for which the employee was hired. You should learn to distinguish who can be assigned this type of work - the question is in the essence of the duties performed - trips “on occasion” and to fulfill work obligations.

Since the law limits the rights of the employer to require frequent travel from certain categories of citizens (pregnant workers, women with young children), when hiring for a position that requires traveling around the country, general labor legislation must be observed.

It is necessary to include a clause mentioning travel in the following situations:

1. Responsibilities involve the need for ongoing business travel within the service region.
2. When working in a territory or facility remote from the office.

An example when it is necessary to include a mention of the specifics of the work in the contract would be the registration of a driver in a company car or a legal adviser to participate in court; sales managers also often spend most of their time in meetings with clients.

Since Russian legislation does not have clear standards and regulations for determining the need for this version of the regime, the employer is given the authority to independently decide when and in what cases to include the required clause in the contract with the employee. However, if business trips are expected due to the non-traveling nature of the work, they must be reflected in the reporting accordingly.

Distinguishing between traveling work and business trips

If the employer initially specifies which positions (professions) require a traveling nature of work, then it will be easier for him to resolve conflicts with employees regarding the issue of remuneration during travel. Some employees may believe that working time during travel should be paid according to the rules established for business trips, that is, according to average earnings. It is determined by multiplying the average daily earnings by the number of working days spent on a business trip. The average earnings may be higher than the official salary, since the base for its calculation, in addition to the salary, includes incentives and other payments related to the performance of job duties. For example, bonuses, payment for overtime and night work, allowances, etc. Therefore, workers who travel regularly may insist on paying for working hours based on average earnings.

In such a situation, it is enough for the employer to explain to the employee that the rules of Art. 167 of the Labor Code of the Russian Federation on maintaining average earnings applies only to business trips. But according to Part 1 of Art. 166 of the Labor Code of the Russian Federation does not include business trips of employees whose permanent work is carried out on the road or is of a traveling nature. Therefore, all travel within the framework of the performance of a labor function will be paid according to the salary, that is, on the terms that the parties agreed upon when concluding the employment contract.

How to register

When the need arises for proper paperwork and reporting, it should be taken into account that traveling activities practiced at the enterprise for specific positions should be reflected in the following documents:

1. A collective agreement or an internal act of an enterprise establishing the rules for the movement of employees in the performance of duties (this can be an order or the publication of a regulation, another version of the regulations) indicating specific positions and professions. The regulatory act specifies the rules for preparing documentation reflecting reports on business trips.
2. Employment contract upon hiring.

Since the titles of positions that will require frequent travel around Russia or business trips around the world may change, it is recommended to include clarifications in the regulations of the enterprise, rather than a collective agreement. Changes to the collective agreement are more difficult to negotiate.

Download Traveling nature of work in an employment contract (sample) (65.5 KiB, 321 hits)

Since there are no clear regulations for formalizing the traveling nature of work in an employment contract, a sample will help in the formulation, or they can use their own formulations, confirmed by regulations in force throughout the enterprise.

Business trips with a traveling nature of work are recorded in the time sheet as the employee’s working time, regardless of his actual location away from the office or production.

Regulations on the traveling nature of work

Since the Labor Code of the Russian Federation does not provide clear instructions for registration, organizations have to correlate their actions with the current general legislation related to the issue of travel within the framework of their main work activities.

Download the Regulations on the traveling nature of work (example) (46.5 KiB, 244 hits)

The main provisions on the registration of seconded employees can be found in RF PP No. 749, adopted in 2008 in relation to persons sent on business trips. Thus, when determining the procedure for formalizing further traveling work, one should proceed from the contents of this document.

A reference to the need for frequent travel is given in the employment contract with a specific employee, and is also contained in the internal documents of the enterprise.

If an employee has already been hired before, but the nature of his work activity does not require frequent travel, an additional agreement is signed, on the basis of which the rest of the enterprise services apply the new standards for recording working hours in the worksheet.

When issuing an internal regulatory document, it is important to ensure that all important points are contained:

1. A list of positions (professions) that require frequent travel to meet the needs of the company.
2. Rules for preparing documentation for such employees and mandatory reporting.
3. Issues of compensation for expenses spent on travel, additional compensation in addition to those established by law (allowances, surcharges).

How to determine the nature of the work

The nature of work, depending on the movement of employees due to their duties, is divided into the following types:
1. Work related to business trips - the workplace is determined by a specific territory, but on instructions from management, the employee can be sent on business trips to other cities and regions. Costs for travel to the place of business trip and accommodation are reimbursed by the employer. This type does not require information about compensation to be included in the employment contract.

To carry out one-time assignments within the city, travel documents are not issued.

2. Traveling nature of work - work associated with constant travel on official business. An example of such employment is couriers, freight forwarders, sales representatives, etc. Since travel is part of a job function, they cannot be considered a business trip.

3. Mobile work and work on the go. This is how train drivers, long-haul drivers, flight attendants, conductors, etc. work.

If the work does not have special features regarding movement, no special conditions may be specified. At the same time, the employer has the right to send such an employee on a business trip.

Employer's actions

In order for internal regulations to optimally organize the work process that involves employee travel, the following measures must be taken by the enterprise management:

• Make sure that all contracts for employees with a traveling nature of work contain a reference to a special work procedure.
• Fix in a separate local document a list of professions where the above nature of employment is acceptable, and also indicate which positions and responsibilities require this type of travel arrangement.
• Introduce document flow rules for persons who frequently move around the country.
• Allowances and the procedure for calculating payments are specified in the collective agreement, or included in employment contracts, or adjustments are made to contracts of both types.

What it is

If an employee spends most of his working time outside the organization, and this position is not limited to a certain period, then the work is considered traveling. The legislation does not establish a list of works that fall under this definition. Consequently, these are any professions or positions associated with constant travel.

There is no clear definition in the Labor Code of the Russian Federation that this is a traveling nature of work. It is compiled based on judicial practice and explanations of government bodies. The constant criteria are:

• The performance of official duties by an employee requires travel;
• The employee spends most of his working time outside the organization.

The remaining criteria are established by the employer, taking into account the position and duties performed by the employee.

What is compensated?

In terms of payment, there are no changes in the traveling nature of work from 2020. The employee is reimbursed for the following expenses (Article 168.1 of the Labor Code of the Russian Federation):

• travel;
• rental housing;
• additional expenses associated with living outside your place of permanent residence;
• other expenses with the permission or knowledge of the employer.

Moreover, now the employer is obliged to reimburse expenses associated with business trips to employees whose permanent work is carried out on the road or has a traveling nature. The changes also affected the rules for reimbursement of additional expenses. The norms and procedure for compensation are not established by law, and the organization has the right to establish the amount and procedure for compensation itself.

According to the old version of the Labor Code of the Russian Federation, expenses were compensated in amounts no less than those established for travel expenses (Resolution of the Ministry of Labor No. 51 of June 29, 1994). Today, although expenses include the same types of compensation as business trips, their amount is established by the employment contract. The amount of expenses for business trips is not limited.