roberino

RichMSN

Funny how that's seen as cheating the customer and not the employee. Seems both are being cheated.

Dodge DeBoulet

While I'm not defending the practice, I don't see how it's illegal. Consistent rules for expenses across all employees are easier to enforce and and administer.

The terms of the agreement between the employer and their customer is really none of the employee's business.

jrl767

it all depends on how both company expense policy and the terms of the customer's contract spelled out what was and was not reimbursable for employee travel ... I'd guess the company's ethics officer wasn't consulted on contract language

Kevin AA

It's almost like a kickback that you don't know about (from the customer's perspective) and receive no benefit.

I can't see how a customer would agree to something like that... I have to pay $55 a day for the engineer's daily meals, yet you want receipts and only reimburse the engineer for actuals not to exceed that $55? It might not be illegal, but it is unethical for sure!

jrl767

bergamini

My current and prior employers have both written flat rate $2500/week (whether a week is 1 to a max of 4 days) into our contracts. Maybe that's a thing for software vendors and their professional services team and not common elsewhere tho.

jrl767

tentseller

As an independent contracted consultant I have a fee that I am paid and an agreed travel expenses for transportation and day "living expenses" rate which covers my accommodation, food and others.
This rate is variable depending on the destination. My contract also calls for periodic adjustment to these rate has on business travel industry figures.

​​​​​​I am satisfy working out of my home city at these rate and whatever they bill the client on a final bill is not of my concern nor do I discuss these personal financial arrangements in pubic. This is also not open for discussion at client site.

At the end of the day all parties need to understand the agreement as to what is covered and not covered, especially administrator and finance.

bergamini

I wish! It changed how frugal I was thought if I know I was going to be way under, then I had some nice meals, etc.

Efrem

You might be surprised at some of the things people talk about over a beer after work, especially if they are (as in this specific case) engineers or other tech types. If you think about it a bit, though, you won't be.

jrl767

Often1

It is not a kickback. It is perfectly legal. It is perfectly ethical.

The employer has a contract with a client which presumably spells out how this figure is paid. The employer has a separate contract (or other agreement) covering how expenses are reimbursed. The two are wholly unrelated and the former is none of the employee's business, while the latter is none of the client's business.

It is a common practice and just like per diems for those where tax systems permit it, acheves simplicity at the expense of bean counters.

RichMSN

Yup. We always quoted a flat rate to cover expenses. It made it easier on the client when it came to budgeting and it avoided awkward situations where the client would notice or care what the consultants paid for hotels, food, etc.

bergamini

I loved the flat rate most of the times. It made me not feel guilty if I had a nice meal knowing that the client was fine with the flat rate and knowing I'd be in way under the flat rate.

The only time it sucked is when the client would ask me to be there and agree to play the weekly flat rate, then they'd get distracted and pulled into a million other things and I would sit in a conference room alone. Sometimes I even just worked from a hotel until they said they needed me. I'm saying at one flush private investment fund in Baltimore, I traveled there 15 weeks and at least 5 of them I saw other people for a total of less than 4 hours the entire stay, and probably even less. But I did love running along the Harbor.

I've also been a consultant with a travel-inclusive hourly rate. I got really good at Priceline for hotels and rental cars to make as much off it as possible. The only problem being is that you usually don't get elite benefits or have them count towards status.