Why a corporate travel alcohol policy is essential
It's pretty common to see drinks and business go hand in hand—whether it's closing a deal over a glass of wine or celebrating a successful day with a round of cocktails. In many corporate settings, alcohol is mostly a given during business dinners and events. However, without a clear corporate travel alcohol policy, this common practice can quickly spiral into a host of issues. What starts as a casual drink can lead to inconsistent expense claims, unprofessional behaviour and even legal trouble.In this guide, we help you create a corporate travel alcohol policy that safeguards your business while allowing your team to enjoy social interactions responsibly.What to include in your travel alcohol policy?
Corporate travel policies outline a business's preferences for employee travel arrangements and related expenses. From the moment an employee books their flight to the time they submit their expense report, every step of the journey should be guided by clear and precise instructions.When it comes to travel expenses, your policy should leave no room for confusion. Whether it’s specifying the class of airfare that different levels of management are permitted to book or detailing allowable meal expenses—every guideline needs to be thoroughly outlined. Clarifying the process for mileage reimbursement is equally important. For example, if senior executives are allowed to fly business or first-class while other employees are expected to stick to economy, this distinction must be crystal clear in your policy. This will help avoid any misunderstandings or disputes.1. Setting alcohol boundaries
The first step in crafting a corporate alcohol policy is determining whether to permit alcohol consumption during office hours and business trips at all. Striking the right balance can be challenging. A policy that’s too lenient could lead to employees becoming inebriated and finding themselves in potentially dangerous situations. On the flip side, a policy that’s too strict might make team members feel disrespected or stifled. Ultimately, the decision should reflect your company culture and the nature of your work.Opting for a policy that encourages employees to stick to non-alcoholic beverages is certainly the safest, most cost-effective and least risky approach. However, this might not sit well with employees who consider themselves responsible drinkers and expect to enjoy an alcoholic beverage at work events.An honest discussion with human resources and other key decision-makers can help decide what approach is best for your organisation.2. Reimbursement guidelines
Assuming the corporate alcohol policy allows employees to drink at all, the next question for businesses to ask themselves concerns the company alcohol reimbursement policy.Broadly, there are three approaches companies take when establishing expense reimbursement rules for alcohol.The first is to allow alcohol but to make it the choice and the cost of the employee. If alcohol is deemed acceptable for the work, but not a business necessity, then employees may be able to buy alcohol at their own expense. Alcohol in this scenario would be permitted, but not considered part of business expenses, since it serves no business purpose. Hard drinks aside, food and other beverages need to be made reimbursable during international work travel.The second approach is to have a set limit on alcohol. Many companies will allow employees to buy one alcoholic drink during business meals if it’s with a client, which the employee can pay for with the company credit card as part of their per diem allowance.Alternatively, a set financial amount can be allowed for the employee. Companies taking this approach need to make it clear the difference between how much employees can reimburse for alcohol, and to what extent they’re allowed to drink past that point, if at all.The final option is a more laissez-faire approach. Employees are allowed to buy, drink, and expense alcohol without limits as if it were another type of food altogether. This is the riskiest approach, and steps should be taken to ensure the company isn’t legally at risk should the employee take things too far.3. Acceptable drinking conditions
When do you consider it acceptable for an employee to drink alcohol? These guidelines should help maintain professionalism, ensure safety and respect cultural norms. They should also protect the company's reputation and relationships with clients and partners.Here are a few aspects you can include in your alcohol policy:- Business-related events: Alcohol consumption is permissible during client dinners, networking events and official company functions. These are settings where having a drink or two can help build relationships and foster a relaxed atmosphere. However, the expectation is that employees will drink moderately—typically limited to one or two drinks—to maintain their professionalism and focus on the business at hand.
- Timing considerations: Alcohol should only be consumed after the completion of all work-related activities for the day. Drinking during business hours, particularly before meetings or during work tasks, is discouraged as it can impair judgment and reduce productivity. This approach ensures that employees are always performing at their best during critical business interactions.
- Appropriate locations: Drinking should be confined to appropriate settings, such as restaurants, bars or event venues. It's advisable to avoid consuming alcohol in informal or isolated settings like a hotel room or while in transit, where the context may be less controlled.
- Legal compliance: Employees must adhere to the alcohol regulations of the location they are visiting. Even if local laws are more lenient, employees should consider the expectations set by their home country’s regulations. For example, an American employee under 21 should not drink alcohol during business travel, even in countries where the drinking age is lower.
- Cultural sensitivity: Employees should be aware of and respect cultural attitudes toward alcohol in the region they are visiting. In some cultures, alcohol consumption may be an integral part of social interactions, while in others, it may be frowned upon or even prohibited. The policy should provide guidance on how to navigate these cultural differences, so employees remain respectful and appropriate in all social settings.
- Non-alcoholic options: The policy should emphasise the importance of offering non-alcoholic options at all business-related events. This ensures inclusivity for employees who choose not to drink due to personal, health or religious reasons. It also reinforces that alcohol consumption is not expected or required, allowing all employees to feel comfortable and included.
Achieve 100% compliance on travel policies with TravelPerk
Incorporating an alcohol policy into your overall corporate travel guidelines is essential to ensure safety, professionalism and compliance during business trips. Although important, alcohol policies might not get the attention they deserve due to the many moving parts involved in managing business travel.By automating compliant booking with TravelPerk, you can streamline travel management and free up time to focus on enforcing other critical aspects of your travel guidelines, such as alcohol policies.TravelPerk allows you to create and customise travel policies in under two minutes, integrating them directly into the booking and approval process. The platform’s built-in compliance features ensure that your guidelines are adhered to while giving travellers the autonomy to manage their bookings without unnecessary micromanagement.?)
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