Sample Employee Discount Programs

Sample_Documents

DISCLAIMER: This is a sample template provided for informational purposes only. It does not constitute legal, tax, or financial advice. Organizations should consult their own legal and tax advisors and tailor this document to reflect their specific business needs, geographies, and applicable laws.

Document Header

Field	Value
Title	Employee Discount Programs
Document Type	Employee Discount Programs
Category	Perquisites & Programs
Company	<Company Name>
Version	v<Number>.<Number> (e.g., v1.0)
Status	Draft for Review / Final
Effective Date	<Date>
Last Reviewed Date	<Date>
Next Scheduled Review	<Date> (e.g., annually in <Month>)
Document Owner	Total Rewards, <Company Name>
Primary Author(s)	<Name, Title>
Approver(s)	<Executive Sponsor, Title> • <Head of HR> • <Head of Legal> • <Head of Finance>
Supersedes	<Prior Document ID / Version / Date>
Document ID	TR-PERQ-DISCOUNT-<NNN>

Purpose and Objectives

Define governance, design standards, and operating procedures for employee discount programs at <Company Name>
Ensure consistent, equitable, and compliant access to negotiated employee discounts across all eligible populations and geographies
Protect employee data and organizational interests through vendor due diligence, security controls, and contractual protections
Establish clear roles, responsibilities, and authority for program approval, funding, communication, and ongoing management
Measure program value and outcomes using agreed key performance indicators aligned to the Total Rewards strategy

Objectives

Deliver meaningful savings to employees on everyday and lifestyle purchases without creating undue administrative burden
Leverage the purchasing power and brand reputation of <Company Name> to negotiate preferred rates and value-added offers
Provide a consistent employee experience via a centralized portal, simple access, and transparent terms
Maintain legal, tax, and regulatory compliance in each <Country> where the program operates
Manage cost and risk using defined budgets, eligibility rules, and vendor performance standards

Scope and Applicability

In Scope

Company-negotiated employee discounts offered by third-party partners and vendors (e.g., retail, travel, technology, wellness, insurance, financial services)
Corporate rate codes and purchase programs capable of personal use by employees, retirees, and other eligible populations where permitted
Employer-funded subsidies or credits applied to purchases through approved programs
Global and country-specific discount programs endorsed by <Company Name>
Governance, due diligence, implementation, operations, and communications relating to these programs

Out of Scope

Base pay, incentives, equity, and core benefits (medical, retirement, insured benefits) covered by separate policies
One-time promotional gifts, spot awards, or business-only corporate rates that prohibit personal use
Unapproved vendor offers and ad hoc discounts negotiated by individuals or local teams without required approvals
Supplier discounts that could create conflicts of interest or violate anti-corruption policies
Expense reimbursement policies for business purchases

Applicability

This policy applies to all business units of <Company Name> operating in <Country> and other approved locations
Eligible populations may include regular employees, interns, temporary employees, contingent workers, contractors, and retirees as defined in the Eligibility section
The policy covers both on-portal and off-portal discount programs approved by Total Rewards

Program Overview

Guiding Principles

Employee-centric design with accessible, inclusive, and localized offerings
Cost-effective portfolio emphasizing vendor-negotiated discounts supplemented by targeted employer-funded subsidies where ROI is demonstrable
Compliance by design, including tax, privacy, and anti-bribery controls
Vendor partnerships selected through objective criteria with measurable performance standards
Simplicity of access, clear terms and conditions, and transparent program governance

Portfolio Categories (Examples)

Retail and e-commerce: apparel, electronics, home goods, grocery, gift cards, and subscription services
Travel and mobility: hotel, rental car, rideshare, public transport passes, parking, and airline programs
Technology and productivity: computers, peripherals, mobile devices, and software subscriptions
Health, wellness, and lifestyle: gym memberships, fitness apps, mindfulness platforms, nutrition, and ergonomic products
Financial and protection: pet insurance, identity protection, legal services plans, and warranty extensions
Education and upskilling: language apps, online courses, exam prep, and certification prep
Family and caregiving: childcare marketplaces, tutoring, eldercare resources
Local market offers: region-specific partners in <Country> and <City>

Eligibility

Default eligibility: active regular employees of <Company Name> in good standing
Optional extensions (subject to program terms and local law): interns, contingent workers, contractors, part-time employees, and retirees
Dependent and household access is allowed only if explicitly permitted by vendor terms and enabled by access controls
Country-specific eligibility variances require approval by Total Rewards and Legal

Access Model

Primary access through the <Company Name> Employee Discounts Portal (SSO-enabled)
Alternative access via approved vendor links, unique codes, or corporate rate codes documented in the program directory
Verification via SSO, work email, Employee ID, or tokenized eligibility feeds depending on vendor capabilities

Employee Discount Portfolio Summary

Program Category	Example Offer	Provider/Vendor	Eligibility	Typical Discount	Funding Model	Access Method	Geography	Notes
Technology Purchase Program	Employee pricing on laptops and accessories	<Vendor Name>	All regular employees	<Percentage>% off MSRP	Vendor-funded discount	SSO portal; unique store URL	<Country>	Annual purchase limit: <Amount> per employee
Fitness Membership	Gym network access	<Vendor Name>	Employees and dependents	<Amount> off monthly fees or <Percentage>% discount	Employer subsidy of <Amount> per month	SSO; eligibility file	<Country>	Subsidy is taxable in <Country> per local rules
Travel: Hotels	Corporate leisure rate	<Vendor Name>	Employees and retirees	<Percentage>% off best available rate	Vendor-funded discount	Rate code in booking engine	Global	Blackout dates apply
Retail Gift Cards	Discounted gift cards	<Vendor Name> marketplace	All employees	<Percentage>% average savings	Vendor-funded margin	Portal marketplace	<Country>	Nontransferable; usage limits apply
Education Apps	Premium learning platform	<Vendor Name>	All employees	Free or <Percentage>% off annual subscription	Employer-funded licenses	SSO; seat-based	<Country>	Seats allocated by business priority

Governance and Compliance

Policy Intent and Disclaimers

Participation is voluntary and offers may change or end at any time without notice
All purchases are personal unless otherwise specified; business use must follow expense policies
<Company Name> is not a party to personal transactions between employees and vendors and does not warrant product quality or service levels

Legal and Regulatory Considerations

Anti-bribery and conflicts of interest: discounts must be broadly available to eligible populations and not targeted to influence vendor evaluations or procurement decisions
Competition and anti-trust: avoid exclusivity terms that restrict employee choice without valid business justification
Accessibility: employee-facing materials and vendor sites should meet applicable accessibility standards in <Country>

Tax Treatment (Illustrative)

Employer-subsidized benefits may be taxable to the employee in <Country> depending on the nature and amount of the subsidy and local law
Discounts offered and funded solely by vendors and made available to a broad community often have no taxable event; confirm with tax advisors in each <Country>
Illustrative examples (replace with company-specific guidance):
- Subsidized gym membership: imputed income equals employer contribution of <Amount> per month in <Country> unless excluded by local rules
- Discounted gift cards: potential taxability if the discount is employer-funded or exceeds de minimis thresholds in <Country>
- Employer-paid software subscription for personal use: may be taxable if not primarily for business purposes

Records and Retention

Maintain copies of approved offers, contracts, and privacy assessments for at least <Number> years or per <Country> record retention requirements
Retain vendor performance and incident logs for auditability

Roles and Responsibilities

Role	Responsibilities
Total Rewards (Owner)	Strategy, portfolio curation, policy ownership, approvals, vendor performance, metrics, and communications alignment
Procurement	Sourcing, RFPs, commercial terms, contract negotiation, and supplier risk management
Legal/Compliance	Contract review, terms and conditions, regulatory compliance, marketing approvals, and anti-bribery review
Finance/Payroll	Budgeting, GL coding, accruals, subsidy taxation and payroll withholding where applicable
Privacy and InfoSec	Security due diligence, data protection addendum, data flows, access controls, and incident response coordination
HRIS/IT	SSO integration, eligibility feeds, portal configuration, and technical support
Corporate Communications	Brand and message reviews, content guidelines, and communication calendar
Country HR Leads	Local adaptations, translation review, and country-specific compliance
Vendor(s)	Offer delivery, support, reporting, data safeguards, and SLA compliance

Decision Rights (RACI Overview)

Task	TR	Procurement	Legal	Finance	InfoSec	HRIS	Comms	Country HR
Portfolio selection	A	C	C	C	I	I	C	C
Vendor selection	C	A	C	I	C	I	I	C
Contract signature	I	C	A	I	I	I	I	I
SSO and data integration	C	I	I	I	C	A	I	I
Communications content	A	I	C	I	I	I	C	C
Tax treatment guidance	I	I	C	A	I	I	I	C
Metrics and reporting	A	I	I	C	I	C	I	I

Design Standards

Eligibility Rules

Define default eligibility by employment status and minimum hours worked per week
Document any waiting periods and country-specific limitations
Clearly indicate retiree and dependent eligibility, if applicable

Discount Types and Limits

Vendor-funded discounts: no budget impact; ensure terms are non-exclusive and transparent
Employer-funded subsidies: set annual or monthly caps per employee (e.g., <Amount> per month for wellness)
Hybrid programs: negotiated baseline discount plus employer top-up during campaigns or peak periods
Purchase frequency limits (e.g., <Number> major tech purchases per rolling 12 months)
Stacking rules: define whether employees can stack vendor promos with employee discounts

Equity and Inclusion Considerations

Offer a balanced portfolio covering different life stages and income levels
Ensure geographic equity with local alternatives where global vendors are not available
Periodically survey employees to close gaps and remove low-value offers

Vendor Management and Selection

Selection Criteria

Offer competitiveness: sustained savings of <Percentage>% vs. typical retail or market rates
Employee experience: localized content, language support, accessibility, responsive customer support
Security posture: completed security questionnaire, certifications in <Country>, minimal PII collection
Commercial terms: no-cost or low-cost to <Company Name> unless business case approved
Contractual safeguards: data protection addendum, SLA and uptime commitments, audit rights, termination rights

Due Diligence Checklist (Illustrative)

Business and financial stability checks
Privacy impact assessment and data mapping
Information security questionnaire and penetration testing summaries
Accessibility compliance attestation for <Country>
Marketing and brand use approvals
Legal and regulatory screening for <Country>
Reference checks with similar clients

Service Level Agreements (SLAs)

Uptime: <Percentage>% monthly uptime
Support: first response within <Number> business hours, resolution within <Number> business days
Data processing: eligibility updates within <Number> hours of file receipt
Reporting: monthly performance dashboard delivered by <Date>

Implementation Guidelines

Project Phases

Discover: confirm business case, stakeholder alignment, and country scope
Design: finalize eligibility, offers, data flows, and communications plan
Build: configure SSO, eligibility feeds, portal content, and brand assets
Test: conduct end-to-end testing, security validation, and content review
Launch: execute communications, monitor usage, and address early issues
Stabilize and Optimize: collect feedback, iterate offers, and refine processes

Integration Standards

Preferred access via SAML/SSO with just-in-time provisioning
Eligibility data fields limited to minimum necessary: Employee ID, status, country, and work email
Data transfer via secure protocols; no storage of passwords by vendor
Deactivate access within <Number> days of employee termination

Content and Brand Controls

All co-branded materials require Corporate Communications review before publication
Use consistent naming: <Company Name> Employee Discounts
Include clear terms, offer validity dates, and exclusions

Processes and Procedures

Enrollment and Access

Employees access the portal via SSO; first-time users accept terms and privacy notice
For programs requiring eligibility files, HRIS sends scheduled updates with only necessary fields
Where codes are used, codes are single-use and tied to Employee ID to reduce fraud

Purchasing and Support

Purchases are made directly with vendors; <Company Name> does not mediate quality disputes
Vendors provide first-line customer support; escalation paths are documented
Refunds and returns follow vendor policies; employees should review terms before purchase

Exceptions and Escalations

Exception requests (e.g., additional subsidy for hardship) submitted via Service Desk and routed to Total Rewards
Complex issues escalate to Total Rewards, then Legal or Procurement as required
All exceptions tracked and periodically reviewed to identify policy improvements

Offboarding and Changes in Status

Access ends upon termination unless retiree eligibility exists
Leave of absence access is determined by eligibility rules and local law
Retiree or alumni programs must use separate access controls if offered

Funding, Accounting, and Tax

Funding Models

No-cost vendor programs preferred; employer-funded subsidies require an approved business case
Funding sources include Total Rewards central budget and optional business unit co-funding

Budgeting and Forecasting

Annual budget includes expected participation rate of <Percentage>% and average subsidy of <Amount> per participant per month
Maintain a contingency of <Percentage>% for campaigns and seasonal spikes

Accounting and Payroll

Record employer subsidies in GL account <Account Number> under Perquisites and Programs
Where taxable, load imputed income to payroll with code <Code> in period earned
Cross-border taxation handled per <Country> rules; Finance consults with local advisors annually

Data Privacy and Security

Data Minimization and Purpose Limitation

Only collect data required for eligibility and access
Prohibit vendors from selling or sharing data for marketing without explicit consent

Legal Basis and Notices

Rely on legitimate interest or consent depending on <Country> and data use
Provide employees with a privacy notice summarizing data elements, purposes, and rights

Retention and Deletion

Eligibility files retained by vendor no longer than <Number> days after update
Data deletion upon contract termination within <Number> days, with certificate of destruction

Incident Response

Vendors must notify <Company Name> within <Number> hours of a security incident affecting employee data
Coordinate response following <Company Name> incident management playbook

Metrics and Reporting

Metric	Definition	Calculation	Data Source	Cadence	Target
Participation Rate	Percentage of eligible employees who used at least one offer	Unique users ÷ eligible headcount	Vendor reports; HRIS eligibility	Monthly	<Percentage>%
Average Savings per User	Mean employee savings per participating employee	Sum of reported savings ÷ unique users	Vendor reports	Quarterly	<Amount>
NPS or Satisfaction	Employee sentiment on discount program	Survey score	Engagement survey; pulse	Semi-annual	<Score>
Cost per Dollar Saved	Employer cost vs. employee savings	Employer spend ÷ employee savings	Finance and vendor reports	Quarterly	≤ <Amount>
Offer Coverage	Proportion of categories and countries with at least one active offer	Active categories/countries ÷ planned	TR portfolio plan	Quarterly	<Percentage>%

Reporting Practices

Publish a quarterly dashboard to stakeholders including trends, top offers, and action items
Conduct an annual portfolio review with recommendations to renew, replace, or retire offers

Risk Management

Key Risks and Controls

Overreliance on single vendors: maintain at least two offers per major category where possible
Data privacy incidents: enforce DPAs, audit logs, and security certifications in <Country>
Low utilization: drive targeted communications and update offers based on feedback
Misuse or fraud: enable single-use codes, purchase limits, and monitoring
Reputational risk: vet partner brands for alignment with <Company Name> values

Review and Approval Process

Approval Gates

Concept approval by Total Rewards with high-level business case
Sourcing and due diligence by Procurement and InfoSec
Legal review of contract and marketing terms
Finance review of funding, tax, and GL implications
Executive Sponsor approval for launch

Review Cadence

Program-level review annually in <Month> with formal sign-off by Approvers listed in Document Header
Mid-year checkpoint to adjust portfolio mix based on performance

Version Control

Version numbering increments at each approved change; material changes require a new effective date
Archive prior versions in the policy repository for audit

Country-Specific Variations

<Country> Addendum Template

Eligibility adjustments: <Details>
Tax treatment summary: <Details>
Required translations and accessibility standards: <Details>
Data residency or transfer restrictions: <Details>
Local vendor alternatives and market norms: <Details>

Implementation Playbook (Sample Timeline)

Week	Activity	Owner
1–2	Business case, scope, and stakeholder alignment	Total Rewards
3–4	Vendor selection and due diligence	Procurement, InfoSec, Legal
5–6	Contracting and DPA execution	Procurement, Legal
6–8	SSO and eligibility integration; content development	HRIS, TR, Comms
9	UAT and security validation; final content approval	TR, HRIS, InfoSec, Comms
10	Launch communications and go-live	TR, Comms
11–12	Stabilization, feedback, and KPI baseline	TR, Vendor

Exception Management

Principles

Exceptions should be rare, time-bound, and consistent with policy goals
Document rationale, approver, and end date for each exception

Request Process

Employee or manager submits request via Service Desk with justification
Total Rewards reviews and consults with Legal/Finance as needed
Decision communicated within <Number> business days
Log and review exceptions quarterly

Audit and Continuous Improvement

Internal audit may review adherence to vendor selection, privacy, and accounting controls
Total Rewards maintains a continuous improvement backlog prioritized by impact and feasibility
Sunsetting criteria: offers with utilization below <Percentage>% for two consecutive quarters and no strategic value

Glossary of Terms and Definitions

Eligible Employee: An individual employed by <Company Name> who meets the criteria defined in this policy and local addenda
Employer-Funded Subsidy: A contribution by <Company Name> reducing the price paid by an eligible employee
Vendor-Funded Discount: A price reduction or offer provided by a third-party vendor without employer funding
Imputed Income: Taxable income attributed to an employee for certain employer-provided benefits as determined by law in <Country>
SSO (Single Sign-On): Authentication method allowing users to access multiple services with one set of login credentials
DPA (Data Protection Addendum): Contractual terms governing the processing of personal data between <Company Name> and a vendor
SLA (Service Level Agreement): Contractual performance commitments from a vendor
RACI: A framework indicating who is Responsible, Accountable, Consulted, and Informed

Appendices

Appendix A: Sample Vendor Security Questionnaire Topics

Data categories collected and purpose
Authentication and authorization methods
Encryption in transit and at rest
Vulnerability management and patch cadence
Incident detection, response, and notification timelines
Subprocessor list and locations
Data retention, deletion, and backup processes

Appendix B: Sample Country Tax Mapping Template

Country	Benefit Type	Employer Funding?	Potential Tax Treatment	Payroll Handling
<Country>	Gym subsidy	Yes	Taxable benefit unless excluded	Imputed income code <Code>
<Country>	Vendor discount	No	Typically non-taxable	None
<Country>	Gift card marketplace	Mixed	Varies by amount/source	Assess monthly; apply thresholds

Employee and Manager Communication

Introducing the <Company Name> Employee Discounts Program

At <Company Name>, we know that every dollar and every moment count. The Employee Discounts Program brings together curated offers that help you and your family save on everyday essentials and the things you love. From travel and fitness to technology and learning, this program is designed to be simple, secure, and worth your time.

How it works

You can explore all available offers in one place through the Employee Discounts Portal. If you are signed in to your <Company Name> account, you will be taken directly to the portal. Some offers apply automatically when you use a special link or rate code; others may display your savings once you verify your work email.

Most offers are provided by trusted partners. In many cases, <Company Name> negotiates special pricing for you. When an offer includes an employer subsidy, we will clearly show the amount and any limits. If taxes apply to a subsidized benefit in your country, payroll will handle it automatically. You will always see the details up front so you can make informed choices.

What you can expect

You will find categories such as retail and grocery, travel and mobility, technology, wellness, learning, and family support. New offers are added throughout the year, and some seasonal promotions may run for a limited time. We aim to keep a balance of global partners and local favorites so you can find options that fit where you live and work.

Each offer includes simple terms: who is eligible, how to access it, how long it is valid, and any limits. If an offer requires a code, it will be shown on the offer page along with step-by-step instructions. If an offer uses a corporate rate, we will guide you on where to enter the rate code when you book.

Getting started

1. Go to the Employee Discounts Portal from the HR or Benefits page. 2. Sign in using your <Company Name> credentials if prompted. 3. Browse categories or search for a brand or product. 4. Open an offer to see the details and follow the steps to redeem. 5. Save your favorites and check back often for new deals.

If you are new to <Company Name>, your access will be ready within <Number> days of your start date. If you leave the company, access generally ends on your last day unless a retiree program is offered in your country.

Support and questions

Your first stop for help with an order is the partner listed on the offer page. They are best equipped to resolve product or service issues. If you have trouble accessing the portal or an eligibility question, submit a ticket through the Service Desk, and we will help you get back on track. If something does not look right in an offer, please report it so we can review with the partner.

A few reminders

This program is for your personal use unless an offer specifically says otherwise. Always review the offer terms before you buy, especially for returns and refunds. <Company Name> is not part of the transaction between you and the partner. We only share the minimum information needed to verify your eligibility, and we expect partners to protect your data.

Your feedback matters

We want this program to deliver real value. After you try an offer, tell us what you think. Your input helps us add better deals and retire offers that miss the mark. Watch for quick surveys during the year, and feel free to suggest partners you would like to see.

Start saving today

Visit the Employee Discounts Portal and discover what is available now. Whether you are planning a trip, setting fitness goals, upgrading your tech, or learning something new, there is likely an offer that fits your plans. Thank you for being part of <Company Name> and for all that you do.

Document Information:

Document Type: Employee Discount Programs
Category: Perquisites & Programs
Generated: August 28, 2025
Status: Sample Template
Next Review: <Insert Review Date>

Usage Instructions:

Replace all text in angle brackets < > with your company-specific information
Review all sections for applicability to your organization
Customize content to reflect your company's policies and local regulations
Have legal and HR leadership review before implementation
Update document header with your company's version control information
At bottom of the document you find a short example on how the content could be communicated to end-users, for instance employees.

This sample document is provided for reference only and should be customized to meet your organization's specific needs and local legal requirements.