Originally Posted by
cepheid
But it's not; the compensation is for foregoing having someone else pay a large cost for you to be guaranteed travel in business class, and thus to save the company as much money as possible by buying the cheapest possible Y ticket. If the cheapest possible Y ticket is upgradeable and if the traveler chooses to spend his/her own miles/certificates/money to upgrade, then the company's policy has been followed and there is no ethical issue.
The compensation isn't there as a reward for some sort of self-flagellating masochistic mentality, it is there to encourage employees to act in a way that saves the company as much money as possible. If employees can preserve the maximum savings possible in a given situation, then there is no ethical violation if they choose to use their own resources to upgrade.
I suspect there's something more strategic going on. It's not just about saving money on a one off occasion, it's about leading by example and showing the way for other staff. If take-up is high enough, then as night follows day, the company travel policy will change and the payment will either be cut or just frozen and eroded by inflation.
Originally Posted by
Non-NonRev
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Are payments under a TSP taxable? (reported to the government as imputed income)?
Pretty sure they would be in the UK. I believe FF points are also a taxable benefit when they are accrued through work.