Dear all
Thank you for any assitance in advance.
I have recieved an "expense" claim / request from employee today for payment of delayed flight compensation that the Company has claimed.
The employee was delayed several hours (5 hours) on a domestic return flight. The business had paid for the flight and claimed the relevant compensation.
Should this be reimbursed to the employee? If so, how should this payment be treated in terms any tax liability thereon or indeed as potntial benefit?
It would seem it was a business expense so the emplyee has no direct entitlement to it?
Many thanks again
Replies (6)
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Only the delayed passenger can claim compensation, not the company or person who paid for the ticket. If the company has made a cliam on behalf of an employee, the compensation belongs to the employee unless there is a clause in the employment contract.
Agree with the haggis.
The compensation clearly belongs to the passenger and it's not clear how the company managed to claim it.
The company paid for the flight which it got. The employee suffered the delay (which may or may not have been in "work time").
You say "It would seem it was a business expense ". In what sense? The company has incurred no expense (unless it's paid the employee overtime for the delay).
So the employee presumably went to claim their compo and had it rejected because the employer had snuck in and claimed it already?
If so, hand it over. Straight away. No tax etc - it isn't your money.
On the other hand, if the employee has claimed additional expenses (meals etc) or overtime, then you can reject the claim.
http://eur-lex.europa.eu/legal-content/EN/ALL/?uri=CELEX:32004R0261
These are the EU regulations. All the references to compensation are to the passenger, not the person paying for the ticket.
My view is that the compensation should be paid to the employee (free of tax). Why should the company benefit from the employee losing 5 hours of their day hanging around an airport?