Employee Business Travel (Delegation)

Business trips are a common occurrence in many companies, and a correct understanding of the rules regarding business travel is crucial for both employers and employees.

What is business travel (delegation)?

Business travel (also known as a business trip or delegation) involves performing a work task outside the locality where the employee's permanent workplace is located. The legal basis for business travel is Article 775 of the Labour Code and the Regulation of the Minister of Labour and Social Policy of 29 January 2013 on the entitlements of an employee employed in a state or local government budgetary unit for business travel.

There are two main types of business travel:

• domestic business travel – taking place within Poland
• international business travel – taking place outside the country

In the case of business travel, the employer is obliged to cover the costs associated with the trip and pay the appropriate daily allowances.

Delegation vs. business trip

The terms “delegation” and “business trip” are often used interchangeably, as in practice they mean the same thing. The Labour Code uses the term “business trip”, but in everyday business language, the term “delegation” is more commonly used.

During a business trip, an employee temporarily performs their professional duties away from their permanent workplace. It is important that, during an international or domestic business trip, the employee remains under the employer's supervision and performs tasks in accordance with their employment contract.

Employee business travel vs. secondment

It is important to clearly distinguish business travel from secondment:

1. Business travel – a short-term trip to perform a specific work task, e.g., a client meeting, participation in training or a conference.
2. Secondment – a temporary change of the place of work specified in the contract or an addendum. It can last several months or even years and is often associated with a change in employment conditions.

In the case of business travel, the employee receives daily allowances and reimbursement of expenses, whereas with secondment, the terms of the employment contract change, and the employee may receive relocation-related allowances.

Who pays for business travel (expenses on a business trip)?

The employer is obliged to cover all justified costs associated with business trips. In practice, employee business travel expenses should be settled, including:

• Travel costs to the destination (tickets, fuel)
• Daily allowances for each commenced day of travel (more on allowances)
• Local travel allowance (unless the employee provides specific receipts)
• Accommodation costs
• Other justified expenses (e.g., parking fees, taxi fares)

All these elements – travel costs, daily allowances, lump sums, local travel allowances – can be settled manually in Excel or using a dedicated tool. A business travel expense management programme calculates them automatically based on the duration of the trip and the documents entered.

To settle costs and obtain reimbursement for travel and other expenses, the employee must provide appropriate documents (invoices, receipts, tickets). Many companies use an advance payment system for business travel costs.

Transport during business travel

During business travel, employees can use various means of transport:

1. Company car – the simplest solution, where fuel and operating costs are covered by the company.
2. Private car (also motorbike, moped) – in this case, the employer reimburses costs according to a per-kilometre rate, which depends on the vehicle's engine capacity (the so-called mileage allowance).
3. Public transport – the employee is entitled to reimbursement of ticket costs (bus, train, plane).

The employee on a business trip should choose optimal transport solutions, considering both costs and time efficiency.

Transport during international business travel

In the case of international travel, the employer may decide on the choice of transport, considering distance, time, and travel comfort.

Accommodation during business travel

The employer is obliged to provide the employee with accommodation during business travel or reimburse the costs of independently paid accommodation. For domestic business travel, the accommodation limit is 20 times the daily allowance rate. This means that the employee can claim reimbursement for accommodation costs up to this amount. If they do not have a receipt (e.g., they stayed with family), they are entitled to a lump sum accommodation allowance of 150% of the domestic daily allowance, provided the stay lasts at least 6 hours between 9:00 PM and 7:00 AM.

For international business travel, accommodation limits are set separately for each country. In the destination locality, the amount of one daily allowance in the destination locality forms the basis for calculating the limits. If the employee on an international trip does not use hotel accommodation (e.g., stays with friends), they are entitled to a lump sum of 25% of the hotel limit.

Most frequent employee questions about business trips (FAQs)

Illness during business travel

If an employee falls ill during business travel, they are entitled to:

• reimbursement of return travel costs to their place of residence
• reimbursement of medical treatment costs (if not covered by insurance)
• sick pay

The employee should immediately inform the employer about an illness during business travel.

Business travel and children

Employees caring for children may refuse business travel if they:

• are raising a child under 4 years old
• are single parents of a child under 8 years old

If a parent has a child older than 8 or is not their sole caregiver, the parent can negotiate terms with the employer, such as shortening the duration of the trip, changing the date, or assistance in arranging childcare.

Can I refuse business travel?

Generally, an employee cannot refuse a business trip, as it is part of their employment duties. However, there are exceptions (such as the age of the child mentioned above). Additionally, the following may refuse business travel:

• pregnant women
• employees with disabilities (depending on the degree of disability. However, it is important to remember that each case is individual and often requires consultation with an occupational physician. The employer should consider the disability certificate and medical recommendations when planning business travel for disabled employees.

Can an employer send an employee without their consent?

Yes, an employer can unilaterally send an employee on a business trip, provided it does not violate specific regulations (such as caring for a young child or being pregnant). A business travel order is binding for the employee.

Business travel on weekends and holidays

If business travel falls on non-working days, the employee is entitled to:

• time off on another date
• or additional remuneration for overtime work

More about how working time during business travel is calculated.

Domestic and international business travel in company practice

Effective management of business travel requires appropriate internal procedures:

1. Advance planning – defining the purpose, dates, budget.
2. Clear communication – providing the employee with all necessary information.
3. Cost monitoring – ongoing control of business travel expenses.

Most frequent practical questions:

How long can I be on business travel? The Labour Code does not specify the maximum duration of a business trip. However, excessively long business trips may be considered a change of workplace, which requires an amendment to the contract.

Can I combine business travel with annual leave? Yes, it is possible to extend a stay at the business travel destination with annual leave, but this requires the employer's consent. In such a case, the employee bears the costs of stay during the leave.

How are meals on business travel settled? Meals are generally covered by the daily allowance. If the employer provides meals, the daily allowance may be reduced accordingly.

If business trips are frequent in your company, it's worth considering preparing business travel regulations and making them available to employees.

Modern business travel management

More and more companies are using dedicated systems for settling domestic and international business travel. These tools allow for:

• Automation of the trip approval process
• Digitisation of documents and receipts
• Quick settlement of domestic business travel expenses
• Generation of reports and cost analyses
• Integration with accounting systems

Thanks to modern solutions, such as electronic business travel expense management, the process becomes much easier and less time-consuming for both employees and the HR department.

Tax aspects of business travel

Employee business travel costs are tax-deductible expenses for the company. However, several aspects should be noted:

1. Daily allowances up to the statutory amount are exempt from income tax.
2. Amounts exceeding statutory limits are subject to taxation.
3. Proper documentation of expenses is crucial for tax purposes.

The tax publisher Gofin sp. z o.o. regularly publishes up-to-date information on changes in regulations regarding business travel settlements.

Glossary of terms related to business travel

Daily allowance – a monetary benefit intended to cover increased meal costs during a stay abroad.

Local travel allowance – a lump sum for local transport costs.

Business travel settlement – the process of documenting and reimbursing costs incurred in connection with a business trip.

Business travel order – a formal document issued by the employer authorising an employee to undertake a business trip (see also → business trip request).

Lump sum – a fixed amount for reimbursement of costs, not requiring documentation of actual expenses.

Business travel destination – the target locality where the employee performs a work task during business travel.

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Note: This article is for informational purposes only and does not constitute legal advice. In individual cases, it is advisable to consult a lawyer or an HR and payroll specialist.