How Do Business Trips Work for Contractors and EOR Employees?

When registering a business trip for a contractor or an EOR employee hired through Companio Work in the Travels section of the dashboard, there are a few important rules and limitations to keep in mind. This guide explains how travel arrangements work specifically for these two profiles, and how they differ from other types of travelers such as internal employees or board members.

Are Contractors and EOR Employees Entitled to a Daily Allowance?

No. Neither contractors nor EOR employees are eligible for daily allowances. This benefit is available only to board members. When registering a trip for a contractor or an EOR employee, the Daily Allowance field will always appear as “Not applicable.”

What Must Be Agreed Before the Trip Begins?

All business trips for both contractors and EOR employees must be clearly agreed in advance between the traveler and the company. This includes:

• The purpose and scope of the trip
• The estimated duration
• The costs the company will cover

Since neither profile is considered an internal employee in the traditional sense, trips must be explicitly confirmed by both parties before the start date.

For contractors specifically, the right to be sent on a business trip must also be included in their contract.

What Types of Expenses Can Be Covered?

The main expense categories that may be covered for both contractors and EOR employees are:

• Travel Expenses (e.g., flights, train tickets, taxis)
• Accommodation (e.g., hotel stays)

These expenses must be clearly defined and pre-approved by the company, which can deduct them as deductible expenses.

Important distinction:

• Contractors should invoice these expenses to the company.
• EOR employees do not issue invoices to the company.

Can Other Costs Be Reimbursed?

This depends on the traveler’s profile:

• Contractors: Yes, but only if additional costs are explicitly agreed upon before the trip. Examples may include coworking spaces, extended transport, or similar business-related expenses. The contractor must issue a purchase invoice to the company for each item covered.
• EOR employees: No. EOR employees cannot invoice the company or request reimbursement for any costs beyond travel and accommodation. These additional costs are not allowed under any circumstances.

Are Non-deductible Expenses Covered?

No. Expenses that are not deductible under Estonian tax regulations will not be covered for any type of traveler. All reimbursed costs must be supported by valid documentation and must be directly related to the business purpose of the trip.

What Happens After the Trip is Registered?

As soon as a trip for a contractor or an EOR employee is registered in the dashboard, the status of the trip is automatically set to Approved. This means:

• There is no internal review or validation process by Companio after submission.
• It is essential that all travel conditions, approvals, and cost agreements are properly aligned before registering the trip.

For this reason, clients should avoid submitting travel records unless all details are clearly agreed and documented.

Updated on: 17/07/2025