Employee security becomes major concern for employers while their employees are on move for their office works. GPS and GSM based vehicle tracking System with employee identification implements the emerging applications of the GSM technology. Using GSM networks online cab tracking system has been proposed that will act as an embedded system which can monitor and control cab locally using built!in input and output peripherals. "emotely the system allows the user to effectively monitor and control the cab on web through GP"S service from GSM network service provider. #t will achieve by receiving location and alert data on server and receiving control command data from server over GP"S service. $he main concept behind the project is to detecting current location of vehicle using latitude and longitude received from GPS and sends it to remote location on web server through GSM using GP"S service. "eceiving command data from remote server on GP"S and processing it further as re%uired to perform desire action. $he type of the operation to be performed depends on the nature of the command sent. "& #' card reader also interfaced with system to identify the employee travelling on cab the employee card data send to remote server over GP"S when card detected on reader. (e have selected a particular GSM modem )*uectel M+,- for our project. $he messages are sent from the GSM Modem that contains commands in written form which are then processed accordingly to perform the re%uired task. . microcontroller based system has been proposed for our project. $here are several terminologies that are used e/tensively throughout this project report. GSM )Global System for Mobile 0ommunications-1 #t is a cellular communication standard. SMS )Short Message Service-1 #t is a service available on most digital mobile phones that permit the sending of short messages )also known as te/t messaging service-.GP"S )General packet radio service- is use to send data to remote server.GPS )Global Positioning System- will gives correct latitude and longitude for current location which it receives from satellites.