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Company outing or business trip? Clarity for employers & teams!
Are you faced with the decision: company outing or business trip? Both options offer unique opportunities to boost employee motivation and strengthen the team. But which option suits your goals and circumstances better? Discover in this article the key differences, legal aspects, and tax advantages. For personal advice, get in touch with us here.
The topic, briefly and concisely
Company outings are intended to promote team spirit and are generally voluntary, while business trips serve the purpose of fulfilling professional duties and are mandatory.
The working time regulations and tax treatment differ significantly between company outings and business trips. A clear distinction is important for legal certainty.
Careful planning of company outings and business trips can increase employee motivation by 20% and reduce turnover by 5%, leading to higher productivity.
Planning the next company outing or a business trip? Discover all about legal frameworks, tax benefits, and how you can make the most of both for your team.
Einführung: Betriebsausflug vs. Dienstreise
Planning employee events can be a challenge, especially when it comes to distinguishing between a company outing and a business trip. Both types of events have different legal and tax implications that need to be considered. As your partner for unforgettable travel experiences, we at GoTuro want to help you create clarity and find the optimal solution for your team. Our expertise in party trips and incentive travel allows us to offer you tailored packages that meet both your employees’ needs and the legal requirements.
What is a company outing?
A company outing is a joint, off-site activity for the entire staff or parts thereof. Its primary aim is the promotion of team spirit and the strengthening of company culture. Participation in a company outing is generally voluntary. The emphasis is on leisure activities and shared experiences outside the daily work environment. Typical activities include hikes, museum visits, or shared dinners. Such an outing is often a welcome diversion and can boost employee motivation.
What is a business trip?
In contrast, a business trip is an employer-mandated trip to fulfil professional duties outside the regular workplace. Participation in a business trip is mandatory for employees as it takes place under the employer's directive. A business trip is intended to carry out professional tasks, such as client visits, attending trade fairs or conferences. Participating in company events like outings or sports events are not business tasks.
Differentiation and relevance of distinction
The distinction between a company outing and a business trip is important for several reasons. Firstly, it affects the tax treatment of costs. Secondly, it plays a role in questions of working hours and associated remuneration. Additionally, the legal framework conditions differ, particularly regarding participation obligations and liability in case of accidents. It is therefore crucial to clarify in advance what type of event it is to avoid misunderstandings and legal issues. We at GoTuro are happy to advise you comprehensively on all aspects of planning and implementing company outings and business trips, so you can focus on what really matters: a successful and motivating event for your team.
Legal certainty through clear definitions in employment law
Legal Foundations and Definitions
To provide clarity for both employers and employees, it is important to understand the legal foundations and definitions of company outings and business trips. This particularly concerns employment law, which sets the framework for both types of events. Correct classification has a direct impact on the rights and obligations of both parties, as well as the tax treatment of the associated costs.
Company Outing in Employment Law
In employment law, a company outing is considered a voluntary event aimed at promoting workplace atmosphere and strengthening team cohesion. As mentioned earlier, participation is generally voluntary. However, the works council can co-determine the planning and execution of company outings. This means that the employer must consider the interests of the workforce, and the works council has a say in the organisation of the outing. Transparent communication and involving employees in the planning can help increase acceptance and success of the company outing.
Business Trip in Employment Law
The business trip, on the other hand, is subject to the employer's right to issue instructions. This means the employer can instruct the employee to undertake a business trip, provided it is within the framework of the employment contract and usual business practices. The employee is obliged to comply with this instruction. In return, the employer is required to cover the travel expenses and provide the employee with the necessary time for the business trip. In the public sector, the TVöD (Collective Agreement for the Public Service) plays an important role, as it regulates the framework for business trips.
Legal Provisions and Rulings
In addition to general employment law provisions, there are also statutory regulations and rulings that clarify the framework conditions for company outings and business trips. These include issues such as working hours, liability in the event of accidents, and the tax treatment of costs. It is therefore advisable to thoroughly inform oneself before planning and conducting such an event, and to seek legal advice if necessary. We at GoTuro are happy to assist you in complying with all relevant regulations so that your company outing or business trip is a resounding success.
Working Time Models: Fairly Compensate Company Outings
Working Hours and Compensation
A key aspect in distinguishing between a company outing and a business trip is the question of working hours and the associated compensation. While business trips are generally considered working hours and compensated accordingly, the treatment of company outings is more complex and depends on various factors. It is important to establish a clear regulation here to avoid misunderstandings and dissatisfaction among employees.
Company Outing as Working Hours?
In principle, a company outing counts as working hours if it takes place during regular working hours. In this case, employees are entitled to continued payment for their regular working hours. However, if the company outing takes place outside working hours, such as at the weekend or in the evening, it is generally not considered working hours. However, there are special cases where a company outing outside working hours can also be considered working hours, for example, if participation is mandated by the employer or if employees are actively involved in organising the outing. Participation in a company outing is not obligatory, especially at the weekend or in your additional free time.
Business Trip as Working Hours
In contrast, a business trip is generally considered working hours. This means that the entire travel time, including the time for travel to and from the destination, is counted as working hours. In addition, employees are entitled to overtime compensation incurred during the business trip. Expenses associated with the business trip, such as travel costs, meal allowances, and accommodation expenses, must also be reimbursed by the employer. It is important to establish clear regulations here and ensure that travel expense accounting is transparent and traceable.
Part-Time Employees and Company Outings
For part-time employees, the question of how company outings should be treated in terms of working hours is also relevant. In principle, part-time employees also have a right to participate in company outings. The consideration of working hours depends on whether the company outing takes place during or outside of regular working hours. If it occurs during working hours, part-time employees are entitled to continued payment for their regular working hours. If it takes place outside working hours, participation is voluntary. We at GoTuro are happy to provide you with comprehensive advice on all questions regarding working hours and compensation for company outings and business trips, so you can find a fair and legally sound solution for your team.
Tax Optimization: How to Benefit from Company Outings
Tax Treatment
The tax treatment of company outings and business trips is another important aspect that must be considered during the planning and execution phases. There are clear differences between the two types of events that affect the tax deductibility of their costs. Correct tax treatment can help reduce costs for the employer while also providing an attractive added value to the employees.
Company Outing and Income Tax
For a company outing, there are certain tax allowances and options for flat-rate taxation that need to be noted. For instance, costs for the company outing can be claimed tax-free up to a certain amount per employee per year. Additionally, there is the option to tax benefits in kind and monetary advantages provided to employees during the company outing on a flat-rate basis. It is important to be aware of the current tax regulations and to document the costs accordingly in order to make the most of the tax benefits.
Business Trip and Travel Expense Claim
In contrast, the costs for a business trip are usually claimed within the framework of the travel expense claim. Here, travel expenses, meal expenses, and accommodation costs can be deducted for tax purposes. There are certain allowances that can be applied, but there is also the option to provide proof of the actual costs. It's important that the travel expense claim is accurate and complete and contains all relevant receipts. The deductibility of travel, meals, and accommodation costs is applicable when the location differs from your regular place of work to be considered tax-wise as a business trip.
We at GoTuro are happy to assist you with the tax optimisation of your company outings and business trips. We provide comprehensive advice on the current tax regulations and help you with the correct documentation and settlement of costs, ensuring you can take full advantage of all tax benefits.
Compulsory Participation: Rights and Duties for Employees
Obligations and Rights of Employees
Another important aspect when planning company outings and business trips concerns the obligations and rights of employees. There are clear differences between these two types of events that affect attendance obligations, liability in case of accidents, and the entitlement to a company outing. It is important to understand the rights and obligations of employees in order to ensure a fair and legally secure solution for all parties involved.
Attendance Obligation for Company Outings?
In principle, participation in a company outing is voluntary. However, there are exceptions where attendance may be obligatory, for example, if the company outing takes place as part of a company routine or if participation is stipulated in the employment contract. Even though participation is fundamentally voluntary, non-participation can sometimes have consequences, for instance, if the employee is excluded from the team or if non-participation is considered disloyal behaviour towards the employer. It is therefore advisable to obtain information about the specific conditions and consequences in advance.
Attendance Obligation on Business Trips
In contrast, there is generally an attendance obligation for business trips. As the business trip is ordered under the employer's right of direction, the employee is obliged to comply with this instruction. Refusal to participate may have employment law consequences, such as a warning or, in the worst case, even dismissal. However, there are also exceptions here, for example when the business trip is unreasonable for health reasons or if it violates legal regulations.
Entitlement to a Company Outing?
In principle, employees have no general entitlement to a company outing. However, such an entitlement can arise if the employer regularly organises company outings over an extended period and thus establishes a company practice. In this case, employees can expect that company outings will also take place in the future. At GoTuro, we are happy to advise you comprehensively on all questions concerning the obligations and rights of employees in relation to company outings and business trips so that you can find a fair and legally secure solution for your team.
Successful Planning: How to Make Team Outings and Business Trips a Success
Organisational Aspects
The organisational aspects play a crucial role in the success of company outings and business trips. Careful planning and execution are essential to ensure that events run smoothly and the desired objectives are achieved. Here are some important points to consider, which vary depending on the type of event.
Planning and Execution of a Company Outing
When planning and executing a company outing, it is important to involve employees and the works council. This can be done, for example, through a survey where employees can express their wishes and ideas. The works council should also be involved in the planning process to ensure that the interests of the workforce are taken into account. Another important aspect is budget planning and cost control. A realistic budget should be set in advance, and costs should be continuously monitored during planning and execution. We at GoTuro are happy to support you in the entire planning and execution of your company outing, from idea generation to on-site implementation.
Planning and Execution of a Business Trip
The planning and execution of a business trip also requires careful preparation. It is important to organise the travel planning in detail and to make bookings for transport and accommodation in a timely manner. Clear travel cost policies should also be established, and approval processes should be transparent. Here too, we at GoTuro can assist you by helping with travel planning, taking on the booking of transport and accommodation, and assisting in the creation of travel cost policies.
From team building to client visits: Practical examples for your success
Case Studies and Practical Examples
To further clarify the differences and similarities between company outings and business trips, some case studies and practical examples are presented below. These examples illustrate how the two types of events can look in practice and what goals they aim to achieve.
Examples of Company Outings
A typical example of a company outing is a joint teambuilding event, where employees have the opportunity to get to know each other better outside the work routine and strengthen team spirit. This could be, for example, a joint trip to a climbing park, a canoe tour, or a cooking class. Cultural events, such as visits to museums or theatre performances, can also be part of a company outing. The aim is to provide employees with a shared experience and promote the company culture. At GoTuro, we have organised numerous company outings for businesses across various industries and can help you find the right event for your team.
Examples of Business Trips
In contrast, business trips are usually associated with specific professional tasks. A typical example is a client visit, where an employee visits a company to present a product or service or maintain a business relationship. Attending trade fairs and conferences is also common for business trips. Here, employees have the chance to learn about the latest developments in their industry, make contacts, and represent the company. At GoTuro, we are happy to support you in planning and executing your business trips, assisting with travel arrangements, booking transport and accommodation, and helping to create travel expense guidelines.
Different Industries and Their Practices
The practices for conducting company outings and business trips can vary depending on the industry. For example, teambuilding events and hackathons are very popular in the IT industry, while client visits and conferences are more prominent in the finance sector. The size of the company also plays a role. In small companies, company outings are often designed to be more informal and personal than in large corporations. At GoTuro, we have experience with companies of various industries and sizes and can help you find the right solution for your business.
Clear Distinction Brings Success: Recommendations for Employers
Conclusion and Summary
The distinction between a company outing and a business trip is crucial in considering both the rights and obligations of employees as well as the tax and legal frameworks. A clear differentiation helps avoid misunderstandings and ensures a fair and legally secure solution for all involved.
The Key Differences between Company Outing and Business Trip
To summarise the main differences once again, here is a brief overview:
Participation: Participation in a company outing is generally voluntary, whereas there is an obligation to attend a business trip.
Working Hours: A company outing is generally not considered working time, unless it takes place during regular working hours or participation is required by the employer. A business trip, on the other hand, is generally considered working time.
Costs: The costs for a company outing can be tax-deductible under certain conditions, while the costs for a business trip can generally be deducted under travel expense accounting.
Recommendations for Employers and Employees
For employers, it is advisable to establish clear guidelines for company outings and business trips in advance and communicate these transparently. Involving employees and the works council in the planning can also help increase acceptance and success of the events. For employees, it is important to be informed about their rights and obligations and to seek legal advice if in doubt. We at GoTuro are happy to assist as a competent partner and support you in the planning and execution of your company outings and business trips. Our expertise in party trips and incentive travel allows us to create tailored offers that meet both your employees' needs and legal requirements.
Outlook on Future Developments
In the future, company outings and business trips will continue to play an important role in working life. It is expected that requirements for planning and execution will evolve due to changes in working conditions and new technologies. For example, virtual team events and digital travel expense accounting are becoming increasingly important. We at GoTuro are always at the forefront and continuously adapt our offerings to current developments, ensuring that you can continue to benefit from our services in the future.
Unforgettable experiences for your team – with GoTuro!
More useful links
Haufe explains the legal aspects of business trips in the public sector, particularly in the context of the TVöD.
Impulse discusses when a company outing counts as working time and what claims employees have.
Advocard provides an overview of the legal aspects that need to be considered when planning and conducting company outings.
FAQ
What is the main difference between a company outing and a business trip?
The main difference lies in the voluntariness and the purpose. A company outing is a voluntary event aimed at promoting team spirit, while a business trip is a mandatory journey to fulfil professional duties.
Is a company outing considered working time?
A company outing is generally not considered working time, unless it takes place during regular working hours or the employer requires participation. Attending a company outing is not mandatory at weekends or in your other free time.
Who bears the costs for a company outing?
The costs for a company outing are usually covered by the employer. There are certain allowances and options for flat-rate taxation that need to be considered.
Am I obliged to participate in a business trip?
Yes, participation in a business trip is generally mandatory as it falls within the employer's directive rights. Refusal may have employment law consequences.
Which costs are reimbursed on a business trip?
On a business trip, travel costs, meal expenses, and accommodation costs are usually reimbursed. There are certain allowances that can be applied, but it is also possible to prove the actual costs.
Do employees have a right to a company outing?
In principle, employees do not have a general right to a company outing. However, such a right may arise if the employer regularly conducts company outings over a longer period and a company practice has been established.
What happens if I don't want to participate in a company outing?
Since participation in a company outing is generally voluntary, non-participation usually has no negative consequences. However, it is advisable to inform yourself in advance about the exact conditions and consequences.
How can GoTuro assist in the planning of company outings and business trips?
GoTuro offers a wide range of tailor-made travel experiences customised to your specific needs. We support you in the planning, execution, and advice regarding legal and tax aspects.
