Business expenses and the construction industry: focus on the commuting allowance and transport expense allowances

Commuting allowances are professional expenses specific to the construction industry. But what exactly are they?

The construction industry is subject to special constraints. Construction workers have to travel a lot to get to their sites, sometimes over long distances. In other words, this is a profession that requires a great deal of mobility on the part of the employee.

As a result, collective agreements provide for appropriate compensation.

To help you see things more clearly, we take a look at commuting bonuses in the building and public works sector and compensation for transport costs. To what extent do they apply? How is the commuting allowance calculated? Are there any other allowances for building and civil engineering trades?

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Short and long journeys: definition

To fully understand what we mean when we talk about actual business expenses in the building and civil engineering sector, we need to understand the difference between short journeys and long journeys.

Some bonuses fall into one category, but not the other.

Short journey allowances

Short journeys are journeys made by workers to construction sites when they are able to return home after the day's work.

However, even in this case, the high level of mobility required of employees represents a constraint. For this reason, the Labour Code provides for the payment of compensation to these professionals:

• the commuting allowance,
• allowance for transport costs
• meal allowances.

☝️ However, the journey between the head office and the worker's home does not entitle him to compensation, as it is not considered as actual working time.

Long-distance travel allowances

When employees find it impossible to return home after their working day because the distance is too great, this is known as long-distance travel (Grand D, or Grand Dép).

Circular DSS/SDFSS/5 B no. 2005-376 of 4 August 2005 provides further details on long-distance travel time in the building and public works sector. It stipulates that the worker falls into this category when :

• the distance between his home or the company's head office and the worksite is greater than or equal to 50 km one way;
• the public transport journey to the site is more than 1 hour 30 minutes one way.

In this case, the employee is entitled to full compensation for accommodation and meal expenses. We will return to this subject later in the article.

What is the commuting allowance?

Commuting allowance: definition

Here's what the national collective agreement for workers employed by construction companies has to say on the subject: "In return for the mobility of the workplace inherent in employment on a building site, the purpose of the commuting allowance is to provide flat-rate compensation for the amplitude of the journey required by the worker.In return for the mobility of the workplace inherent in working on a building site, the purpose of the commuting allowance is to compensate the worker on a flat-rate basis for the distance travelled each day to reach the building site before the start of the working day and to return after the end of the working day."

The commuting allowance is therefore defined as a flat-rate daily allowance. It corresponds to the daily time spent by employees travelling to and from work sites, and is intended to compensate for the constraints associated with the high degree of mobility inherent in their assignments.

☝️ Note: the commuting allowance is subject to social security contributions.

How do I qualify for the commuting allowance?

The commuting allowance applies to temporary work, fixed-term contracts and permanent contracts.

Workers benefit regardless of the mode of transport used (private car, company vehicle, etc.).

However, there are a number of situations in which it does not apply:

• when the company provides free accommodation for the employee in the immediate vicinity or on the site,
• when the company pays the employee directly for the time spent on the journey (because it is counted as actual working time).

Finally, it should be noted that the commuting allowance does not apply to sedentary employees, i.e. those who work permanently at the organisation's head office.

What's the difference with the transport allowance?

Transport expense allowance: definition

We could say that the transport allowance has a more economic scope, since it relates to the reimbursement of expenses incurred by the worker when travelling to and from work on a site.

☝️ Insofar as it relates to employees' expenses incurred in travelling to and from work, it is not subject to social security contributions.

How do I qualify for the transport expense allowance?

The transport expense allowance is paid to workers who use their own vehicle. It can be combined with the commuting allowance.

However, these allowances are not granted systematically. Employees are not entitled to it if the employer provides transport free of charge, by :

• the provision of a company car,
• a pick-up system
• reimbursement for public transport.

Differences between commuting allowance and transport expense allowance:

How is the commuting allowance calculated?

The amount of the commuting allowance varies according to the situation, since it is calculated on the basis of the distance between the worker's home and the worksite, using concentric circular zones spaced 10 km apart:

• Zone 1 A: 0 to 5 km
• Zone 1 B: 5 to 10 km
• Zone 2: 10 to 20 km
• Zone 3: 20 to 30 km
• Zone 4: 30 to 40 km
• Zone 5: 40 to 50 km
• Zone 6: 50 to 60 km
• Zone 7: from 60 to 70 km

💡Good to know: if an employee works at different locations on the same day, the worksite furthest from his home is taken into account when calculating the bonus.

In addition, the value of the commuting allowance per zone differs from one region to another. This amount is set by agreement and re-evaluated each year.

We therefore recommend that you regularly consult the table of local travel allowances published by the Fédération Nationale des Travaux Publics (FNTP).

How is the transport allowance calculated?

Similarly, transport allowances are based on a system of circular zones and regions.

Once again, you need to check the applicable scales on the FNTP website, based on the agreements specific to the location of your company.

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Other allowances specific to the building and civil engineering sector

Lump-sum meal allowance

Because of the travel constraints associated with the building and public works sector, workers are entitled to other allowances.

This is the case with the fixed meal allowance.

This becomes effective when it is proven that employees are unable to return home or to the company's head office for lunch, because they are obliged to remain on site.

However, compensation for meal expenses does not apply if the company :

• sets up a company restaurant on the site,
• opts for reimbursement on the basis of actual expenses, on presentation by the worker of proof, such as an expense claim.

💡 Minimum allowances are set by collective agreement and again vary from region to region. To find out more, refer to the tables above.

Compensation for long-distance travel

As we have already mentioned, employees in the building and public works sector may be required to travel long distances, making it impossible for them to return home in the evening after their working day.

In such cases, the company must cover the cost of meals and accommodation.

Compensation for long-distance travel is paid :

• either on the basis of actual expenses, on the basis of a receipt provided by the worker (expense account),
• or on the basis of a fixed allowance, without presentation of supporting documents. The scale applied is as follows:

Commuting allowances and other professional expenses related to the building and civil engineering sector are therefore subject to many variables, and vary according to collective agreements.

That's why it's a good idea to find out all you can beforehand, so that you can offer your workers the most appropriate scheme to support them in the performance of their duties.