The standing mission order (SMO) is an essential tool for companies whose employees travel regularly for professional reasons. It simplifies the administrative and financial management of these trips, while providing a clear and secure framework for the employees concerned. This article gives you all the keys to understanding and mastering the SMO, from its definition to its implementation.
1. What is a standing mission order ?
A standing mission order is a written document that defines the conditions under which regular professional missions involving travel are carried out. Unlike a one-off assignment order, which relates to a specific trip, the SMO covers a fixed period, generally one year. This means that the employee does not need to request authorisation for each trip, which considerably simplifies administrative procedures.
The Permanent Mission Order is governed by the French Labour Code (articles L. 212-4 et seq.) and may be supplemented by specific provisions set out in collective agreements. It is a genuine contract between the employer and the employee, setting out the rights and obligations of both in terms of business travel.
2. Why use a standing mission order ?
The SMO offers a number of advantages for both employers and employees :
For the employer :
- Administrative simplification : the SMO eliminates the need to draw up a mission order for each trip, thus reducing the workload for the human resources department.
- Legal certainty : the SMO provides a framework for business travel and protects the employer’s interests in the event of a dispute (workplace accident, disputed expenses, etc.).
- Cost control : the SMO makes it possible to budget for travel costs and control expenditure more effectively.
For the employee :
- Autonomy : the SMO gives employees a certain amount of freedom in organising their travel, without having to ask for systematic authorisation.
- Clarity : the SMO specifies the costs covered by the employer, thus avoiding misunderstandings and unpleasant surprises.
- Legal certainty : the SMO guarantees that the employee’s business expenses will be covered and protects the employee in the event of a work-related accident while travelling.
3. How do you draw up a standing mission order ?
The SMO must be drawn up in writing and include the following compulsory information :
- The identity and contact details of the employer and employee.
- The nature of the assignment and the employee’s duties.
- The geographical area covered by the SMO (town, department, region, country).
- The period of validity of the SMO (maximum 12 months).
- How business expenses are reimbursed (mileage scales, flat-rate allowances, reimbursement ceilings, etc.).
- Conditions for use of personal vehicle (if applicable).
It is advisable to have the SMO validated by the employee and to give him/her a signed copy.
4. What costs are covered by a standing mission order ?
The SMO must specify the types of expenses covered by the employer. The most common expenses are :
- Transport costs : train or plane tickets, fuel costs, tolls, parking, mileage allowances (€0.58 per km in 2023 for a 5 CV vehicle).
- Accommodation costs : hotel nights, flat rental, breakfast.
- Meal expenses : meals in restaurants or takeaways, flat-rate allowances (€15.50 in 2023 for one meal).
- Other expenses : visa fees, vaccinations, laundry (if justified).
Non-business expenses (personal expenses, fines, etc.) are not covered by the employer.
4. How do I get reimbursed for expenses incurred ?
The employee must provide his employer with proof of the expenses incurred (invoices, receipts, etc.) within a reasonable period of time (generally one month). The employer must reimburse the expenses within a maximum of one month, unless otherwise agreed. Reimbursement may be made by bank transfer, cheque or cash.
To make it easier to track expenses and reimburse expenses, there are expense management tools and software, such as Vertical Expense. This solution enables the company to frame and monitor each assignment by linking the types of expenditure and authorised ceilings over the predefined period of the assignment. All employees have to do is enter their expenses in real time, attach supporting documents and submit their expense reports in just a few clicks.
5. What are the risks of not following the rules ?
Failure to comply with SMO rules can have legal and financial consequences for both the employee and the employer.
For the employee :
- Disciplinary sanctions : Failure to comply with SMO rules may be considered professional misconduct, which may result in disciplinary sanctions ranging from a warning to dismissal for serious misconduct, depending on the seriousness of the breaches and their repetition.
- Refusal to reimburse expenses : The employer may refuse to reimburse the expenses incurred by the employee if they are not justified, do not comply with the ceilings set by the SMO, or if the supporting documents are not provided within the required timeframe.
- Reimbursement of sums unduly received : If the employee has received undue sums under the SMO, he or she may be required to reimburse the employer.
For the employer :
- URSSAF reassessment : URSSAF can reclassify reimbursements of business expenses as salary if it considers that the SMO rules have not been complied with, resulting in additional social security contributions for the employer.
- Tax reassessment : The tax authorities may also reclassify reimbursements of business expenses as salary, which means additional tax for both the employer and the employee.
- Late payment penalties : If the employer fails to reimburse business expenses within the statutory or contractual time limits, it may be ordered to pay late payment penalties to the employee.
- Damages : In the event of damage suffered by the employee as a result of non-compliance with OMP rules, the employer may be ordered to pay damages.
6. Amendments and cancellations of standing mission orders
The Standing Mission Order is not set in stone and may change according to the needs of the company and the employee. The Permanent Mission Order can be modified at any time, by mutual agreement between the two parties. These changes may concern the geographical area covered, the period of validity, the terms and conditions for reimbursing costs, etc. It is essential to formalise these changes in writing, either by an amendment to the initial Standing Order or by a new Standing Order.
Similarly, the SMO may be cancelled at any time, either by agreement between the employer and the employee, or unilaterally by the employer, provided that reasonable notice is given and that the decision is justified.
The Standing Mission Order (SMO) is much more than a simple administrative formality. It is the guarantee of a balanced and transparent working relationship, where business travel becomes a lever for performance. For companies whose DNA is movement, such as the media, consultancies or homecare services, the SMO is an essential compass. It provides a framework for missions, clarifies responsibilities and controls costs, while offering employees greater visibility and security.
When combined with expense management software such as Vertical Expense, the Standing Travel Order becomes the key to seamless expense management. Gone are the days of errors and oversights, replaced by automation, traceability and peace of mind for all concerned.
