Employee Expense Reimbursement: What the Contract Should Guarantee
What This Clause Does
This clause sets the rules for getting repaid when you spend your own money on work. It typically covers travel, client entertainment, equipment, and professional development. The key details are what expenses qualify, how quickly you'll be reimbursed, and what documentation you need to provide.
Some reimbursement clauses are deliberately vague, leaving expense approval entirely at management's discretion. If your role involves significant travel or client entertainment, get specifics in writing.
Example Clause Pattern
"Company shall reimburse Employee for all reasonable and necessary expenses incurred in connection with performance of duties, provided Employee submits itemized expense reports with receipts within [30] days of incurring such expenses, subject to Company's then-current expense reimbursement policy."
What to Watch
- Reimbursement subject to manager approval with no defined criteria
- Short submission window (less than 14 days) makes it easy to miss reimbursement
- Reference to a "current policy" that can be changed at any time without notice
- No mention of timing: company could delay payment indefinitely
How This Clause Works by Jurisdiction
California Labor Code §2802 requires employers to reimburse all necessary expenditures incurred in performing job duties, including personal cell phone and home internet if required for work. This protection is non-waivable — a contract clause limiting reimbursement below actual necessary costs is void.
Reviewed May 2026
New York has no statute equivalent to California's Labor Code §2802. However, unreimbursed business expenses that reduce take-home pay below minimum wage violate New York Labor Law §193 and the FLSA. Employers must reimburse for remote work equipment if the failure to do so drops pay below minimum wage.
Reviewed May 2026
UK employers must reimburse legitimate business expenses under the Employment Rights Act 1996. HMRC approved mileage rates apply (45p per mile for first 10,000 miles). Failure to reimburse genuine business expenses within a reasonable time may constitute an unauthorized deduction from wages under ERA §13.
Reviewed May 2026
Jurisdiction-specific information is general in nature and not legal advice. See disclaimer.
Found in These Contracts
This clause commonly appears in the following contract types:
Negotiation Strategies
Request a defined reimbursement timeline, such as within 15 business days
Get pre-approval thresholds in writing to avoid disputes later
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