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Who "owns" the compensation?
A colleague was travelling back from the US last week and voluntarily took the $800 compensation he was offered for flying 24 hours later. He met a friend in town and drank about $400 of it in one night, and I have to say I like his style
This week he was told to hand over the compensation money (actually deducted from his expenses) because the company paid for the ticket, and therefore the compensation was theirs. He argued that as he was the person delayed the money was his, but was told that because he opted to accept a 24 hour bump it wasn't.
Clearly he is a 5* knumpty for telling people in the company about this at all, but I think he has been harshly treated and that the cash is his. What does everyone else think?
(BTW, this was on a UA flight, but I want the UK opinion on this).
__________________ Lose a sense and those left compensate. That's why people with no sense of humour have a greater sense of self-importance.
I would say it all comes back to the employment contract. If there is a term in there that allows a clawback of compensation received on company travel then he needs to cough up. Many employment contracts contain a generic clause saying that the employee agrees to abide by company policies, and if that policy says that compensation for travel delays belongs to the company, then he should probably cough up.
If he skipped a day's work to spend the extra day, that's a disciplinary issue. But it does not mean the company can just arbitrarily decide to confiscate the $800. There has to be some basis in contract for that, and if the matter is disciplinary you have to refer back to the discipline policy or the individual's employment contract to see what the consequences are.
That's the legal side of it. Now for the practical side.
If he skipped work, save the grief and cough up.
If he did this on his own time and the company travel policy is silent on compensation for travel delays, I say he keeps the cash if he's prepared to look elsewhere for work. I say this for two reasons: first, no matter how unreasonable and miserly the request, if the company wants the cash and he refuses, that's probably a CLM; second, anyone working for such bloody-minded people should really find a better place to work.
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He was due home on a Friday morning (and was excused working for the remainder of that day) and actually got home on Saturday morning.
He and I have both scoured the travel policy and there is nothing in there about who owns compensation either way.
The hotel and a food voucher were provided by the airline. My colleague paid his own taxi to and from town, and for his own food in town. He made a point of this because he felt that charging any of these expenses to the company when he had opted to take the bump would be unethical.
This was a decision by the regional FD that my colleague's line manager enforced (apparently with a great deal of reluctance and awkwardness).
__________________ Lose a sense and those left compensate. That's why people with no sense of humour have a greater sense of self-importance.
The simple answer, as above, is that it depends on whether he was on company time. But Souvlaki raises some interesting nuances:
Quote:
Originally Posted by Souvlaki
I would say it all comes back to the employment contract. If there is a term in there that allows a clawback of compensation received on company travel then he needs to cough up.
I'd be surprised if many contracts contain that level of detail, but then maybe I just haven't seen one like that yet.
Quote:
Originally Posted by Souvlaki
If he skipped a day's work to spend the extra day, that's a disciplinary issue. But it does not mean the company can just arbitrarily decide to confiscate the $800.
Indeed so. The company 'owns' you insofar as it pays your wages for a day. If you voluntarily skip a day then IMHO then the employee either owes the company a day's work, or a day's wages. The $800 is irrelevant.
However, just to offer a counter-argument, one might argue he had effectively 'earned' that $800 on company time - in which case I suddenly have more sympathy for the business.
Of course, he may earn more than $800 per day, in which case I suggest he pays up and isn't quite so loud-mouthed next time (but does, instead, charge more of his expenses back to the company - as I'm sure he will now do)!
Edit:
Quote:
Originally Posted by roberino
He was due home on a Friday morning (and was excused working for the remainder of that day) and actually got home on Saturday morning.
Then I would say that if he was excused working before the delay and compensation was offered, then the company had already given up its claim on his time and how he spent it. If he was excused working because of the delay and compensation, then the company has a claim.
He should have kept his bloody mouth shut! The Friday morning issue is ambiguous - the company would no doubt assert he was 'working from home' and therefore on their time, and took money to go on a session.
At this stage, he should offer to go halvies, to not damage his career and reputation (dishonest, but also p*sshead?) any further. Or pay it and chalk it up for experience.
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Quote:
Originally Posted by dark_horse
Then I would say that if he was excused working before the delay and compensation was offered, then the company had already given up its claim on his time and how he spent it. If he was excused working because of the delay and compensation, the company has a claim.
I think that this is where the sticking point is for the FD. The day he missed was a working day, but he wasn't given a day of annual leave for this. Rather, he was told by his LM that due to him coming off an overnight long-haul flight he would be excused not doing any work that day. As it happens, once his hangover had worn off on the Friday he did actually do about half a day of work, which is more than he would have done at home sleeping off the flight.
Right now I'm siding with my colleague because he is a mate and the FD is the type of man I would never tire of hitting, but taking that out of the equation I can't decide who is right or wrong.
__________________ Lose a sense and those left compensate. That's why people with no sense of humour have a greater sense of self-importance.
I'd be surprised if many contracts contain that level of detail, but then maybe I just haven't seen one like that yet.
I'd be surprised as well, and likewise have never seen a policy covering this issue. But it's easy to check and should put the issue of the $800 to rest one way or the other.
Quote:
Indeed so. The company 'owns' you insofar as it pays your wages for a day. If you voluntarily skip a day then IMHO then the employee either owes the company a day's work, or a day's wages. The $800 is irrelevant.
Well, I don't think the company 'owns' you in any sense. They pay you, you provide services. If you fail to provide as agreed, then there are consequences as per the contract and maybe as implied by law. Aside from that, I fully agree with the above. Unless there's a travel policy dealing with compensation, the $800 is not in play, even if he was playing hookey.
I think that this is where the sticking point is for the FD. The day he missed was a working day, but he wasn't given a day of annual leave for this. Rather, he was told by his LM that due to him coming off an overnight long-haul flight he would be excused not doing any work that day. As it happens, once his hangover had worn off on the Friday he did actually do about half a day of work, which is more than he would have done at home sleeping off the flight.
They excused him from work on Friday, which means he was given leave. It doesn't have to be taken from your annual leave for you to have permission to be off work... if you are given time in lieu for working extra long (or in this case for travelling on your own time) then the company has no right to dictate that you should spend your lieu time in your own bed as opposed to anywhere else.
Your mate's a little daft for handling it this way, but I'm on his side from what you tell us here.
