Rules on missions and travel allowances

Do you know what your employee is entitled to when you send them on a business trip and what you must not forget? Find out under what conditions an employee can go on a business trip and what expenses are involved.

What is a business trip?

A business trip is nothing more than the legislative designation of the colloquial term business trip. The Labour Code defines it as a temporary assignment of an employee to perform work outside the agreed place of work. It does not specify how long it should be - on the contrary, it says that you can only send an employee on it by mutual agreement.

What do I need to do before a business trip?

Who cannot be sent on a business trip?

If your employees refuse to give you permission to carry out business trips, you can also give them notice of termination for failing to meet the requirements for the performance of the agreed work. They can only refuse business travel without penalty:

1/ Employees listed in the Labour Code, who can only be sent on a business trip if they have given their consent for a specific trip. These include:

• Pregnant women and employees caring for children under 8 years of age;
• single persons caring for a child under the age of 15;
• carers who are demonstrably caring for a person who is dependent on the help of others for a long period of time.

2/ Employees who have not given prior approval for work trips.

Length of working trip

If you send an employee on a two-day business trip, you will not pay for 48 hours of work or pay overtime. He would only be entitled to overtime pay if he actually worked longer than his scheduled hours while on the business trip.

On the other hand, even if he spends two hours of the entire trip meeting with a client, for example, he is still entitled to be compensated as if he had worked a full day.

You do not pay an employee for time spent on a business trip that does not fall within a scheduled shift (e.g. evening travel, overnight stay in a hotel). He is only entitled to reimbursement of travel expenses for this time.

Domestic business travel

An employee on a mission is entitled to reimbursement of travel expenses relating to:

• transport;
• meals;
• accommodation;
• other expenses, if any.

You can advance the money, provide a company credit card or reimburse the employee after the business trip is over.

While the minimum limit for meal allowances and the amount of reimbursement for the use of the employee's own vehicle is regulated by a decree of the Ministry of Labour and Social Affairs and the amounts change every year, other reimbursements are paid according to actual expenses based on documented evidence. Decree No 398/2023 of 18 December 2023 applies to the provision of travel allowances in 2024.

Meal allowances

The amount of the meal allowance is based on the length of the working trip and the number of meals provided.

While employers in the state and contributory sector may opt for meal allowance rates within a specified range, you as an entrepreneur are obliged to pay employees at least the amount specified at the lower limit pursuant to Section 163(1) of the Labour Code. You can increase the meal allowance, but anything above the legal limit is taxed and subject to social security and health insurance deductions.

Beware of meal reductions - when free meals are provided during a business trip, the meal allowance is reduced by 70, 35 or 25% per meal (depending on the length of the trip).

Travel allowances when using a private vehicle

If employees use a company vehicle for business purposes, they are not entitled to travel allowances. If the employee uses his/her own car, he/she is entitled to reimbursement:

1/ Fuel consumption (petrol), which you determine in two possible ways:

• Actual cost - you will reimburse the employee for fuel receipts.
• Flat-rate - you use a fixed amount per kilometre when billing, which is regularly updated by the Ministry of Labour and Social Affairs, even several times during the year.

2/ Depreciation, which is the allowance for wear and tear on the vehicle, which is determined by the above mentioned decree. In 2024, the basic rate for 1 km of car travel is CZK 5.60.

Other expenses

You are also required to reimburse employees for other expenses incurred, such as accommodation and travel on public transport, on the basis of receipts or invoices.

However, it is your responsibility to determine how and by what means employees will be transported or where they will sleep. If an employee chooses a different (more expensive) means of transport than the option you have approved, or a luxury hotel, you will only reimburse them up to the pre-approved amount.

Foreign travel

Similar rules apply for foreign travel as for domestic travel. They differ mainly in the amount of the meal allowance, which for 2024 is regulated by Decree 341/2023 Coll.

In addition, you can also provide employees with other travel allowances set by internal regulations or collective agreements, such as pocket money, which can amount to up to 40% of the daily meal allowance.

Don't worry about business travel

Don't stress about whether you are using the approved forms correctly or paying the actual meal allowance. We keep track of the laws and other regulations for you! Concentrate on managing and growing your business and leave the complete accounting agenda to our accounting team.

Contact information

Write to us and we’ll get back
to you within 24 hours.

+420 226 224 724

info@jake-james.cz

Revoluční 736/15, Praha 1

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