Companies get tough on expenses claims

THE political scandal over MPs expenses is causing North West businesses to look again at their own expense policies, according to research.

Some 10% of the business leaders polled in the region are revisiting their expense policies and 18% are re-examining the way in which claims are policed, according to law firm DLA Piper.

Mary Clarke, head of employment law at DLA Piper in Manchester, which conducted the survey, said:  “It’s the very fact that most public and private sector organisations do a good job of managing expense claims has made the Westminster revelations all the more remarkable – there’s a compelling contrast in culture and standards.

“That said, our feedback suggests that senior managers are looking again at policies for employees – and indeed what they themselves consider justifiable for their own claims.”

Some 14% of respondents have dismissed an employee at some point during in their career over an expenses-related issue – and 46% have challenged an employee over an expense claim in the past 12 months.

Ms Clarke added: “The apologies and repayments made by MPs are all very well but I think the business community recognises these explanations would not wash in the private sector, especially at Plc level. Making an unjustifiable claim for expenses, no matter how trivial the amount, can be grounds for dismissal.”