January 31, 2007
21.4.927
Background
The employee grieved the department's refusal to reimburse tips paid to taxi drivers by the grievor on his travel claims under Module 3 of the Travel Directive in January and February 2006.
Bargaining Agent Presentation
The Bargaining Agent representative believes that paragraph 3.3.11 of the Travel Directive requires that an employee be reimbursed for the full and actual cost of travel by taxi, which includes tips. She explained that for many years, reimbursing both the fare and tip of commercial travel under Module 3 was acceptable and common practice.
She pointed out that the wording regarding taxis under Modules 1, 2 and 3 is identical and that the department had clearly stated in a December 12, 2005 e-mail that the actual cost including tips would be reimbursed for Modules 1 and 2.
She argued that the 'actual cost' listed in 3.3.11 includes tips to taxi drivers, as the incidental expense allowance only covers out of pocket expenses that are not otherwise covered under the Directive and the cost of taxi travel is covered elsewhere.
Departmental Presentation
The departmental representative explained that the grievor had traveled on government business on various occasions in January and February 2006 and claimed for travel expenses in accordance with the Government Travel Directive. He maintained that the grievor was treated in accordance with Module 3 of the Travel Directive, which includes an entitlement to a daily incidental expense allowance, and which was paid to the grievor.
He pointed out that all employees in the grievor's region were reminded on December 12, 2005 by an all-employee e-mail sent from the Regional Manager of Finance that there was no entitlement to claim tips on employee travel expense claim forms when there is an entitlement to the incidental allowance.
The department sought a verification of the interpretation from officials at Treasury Board Secretariat pertaining to tips and gratuities and received confirmation. He explained that the department then revised the grievor's claim forms to exclude tips to the taxi drivers.
Executive Committee Decision
The Executive Committee considered and agreed with the Government Travel Committee report which concluded that the grievor was not treated within the intent of the Travel Directive.
The Committee noted that the use of the term "actual expenses" in 3.3.11 (a), and in all Modules under Commercial Transportation (3.X.11(a)), was intended to include tips to taxi drivers. The Incidental Expenses Allowance would not cover this type of gratuity, since it is provided for in 3.3.11. As such, the grievor should be reimbursed for tips paid to taxi drivers.
The Executive Committee also noted that the issue of gratuities would be clarified during the cyclical review of the Travel Directive.