Annual Air Ticket - UAE

Dear fellow HR professionals,
When i joined as HR director earlier on the year, i had a number of concerns/complaints from employees on the mode of how they receive their annual leave air ticket. We provide a " ticket " for employee and legal dependent residing in the country. I would like to introduce a cash entitlement for all expat employees in the Middle East. This would reduce the burden on Administration to facilitate this process and help in correct costing and accrual in Finance. Please share your thoughts of the practice implemented in your company in the UAE.
Thanks and Regards,
Ashwita Dmello

But the problem is determining the cost of ticket as air tickets fluctuate from time to time. Some employees may be due in getting the air tickets in season and some in off-season. How will you arrive the uniform cost for cash entitlement in lieu of tickets?
Pon

Hi All,
Many companies now are preferring enmeshment to takeoff the burden from Administration. anyone has an idea on the calculation basis??
kind regards,

Hi!

Providing cash, instead of tickets, will indeed unburden the Admin Department from the hustles and cost of personnel that will coordinate/ implement the bookings and ticketing arrangements for employees and their dependents in a company, esp if their employee population runs into thousands. I have seen organizations who maintains a unit with many employees in simply doing this year on year.

Providing cash is the simplest and most cost effective manner/ strategy. Estimate the cost based on the average cost of the travel tickets from the country of work to the main airport of the country where the employee comes from. Provide each employee with the equivalent cash relative to their entitlement, including their dependents at the beginning of each year, to provide them the flexibility of booking early, and on their approved annual vacation leave as discussed and approved by their respective department managers/ supervisors. Create a policy on this matter specifying the change in the arrangement and its terms and conditions. Make it clear that differences between actual air ticket costs and the provided allowance will not be refunded by the company--- and that booking timings shall be the responsibility of all employees. As a matter of service, the company can invite a good travel agent to set up a small office in the company's premises to facilitate employee travel arrangements. Discounts can also be negotiated, esp if the travel agency can get exclusive arrangement with them.

I can help you develop the policies and set up of the arrangement on this matter. Contact me if you need professional help in this area.

Best regards.

Ed Llarena, Jr.

Managing Partner

Emilla International Consulting Services

Dear Ed,
Thank you for your explanations, however in the case of Filipinos as an example tickets' prices double in peak season, considering that they will all requests to be paid at peak season rates, which make the process not cost effective.
regards,
B.O

Hi!

Benefits which are not defined specifically and/ or mandated by law (with minimums) must be considered discretionary and the prerogative of the company. Hence, to say that employees, regardless of their nationality, will demand that they be paid the price of tickets during peak season is absurd and non-sense.

Employees (even unions) have no business making demands on amounts or types of benefits, unless it has been approved, enunciated, and announced by the company. And the determination of rates are largely prerogatives of top management because of their impact to the company's financial situation year on year.

A very big financial institution in KSA provides cash allowance for the air tickets of their employees based on the lowest priced RT ticket of a certain airline. It is accepted and employees know clearly the rules. If they book and travel only during peak season (or travels via business class), that's their own look out and cost, because the allowance will not suffice for the price of RT economy class air tickets during peak season. They will have to pay the price difference from their own money. And, employees do that without complaints. They can also save the money if they decide to cancel their travel for that year.

But, the given amount is actually a little more than the price of a RT ticket (economy) if the employee can books early and/ or travels during non-peak season.

Best regards.

Ed Llarena, Jr.

Managing Partner

Emilla International Consulting Services