Does EU261 compensation belong to me or my company?

Default: you, the passenger. Your corporate policy can override this if it explicitly claims statutory compensation. Read your policy; disclose and ask if silent.

If my employer paid for the hotel, who keeps the airline reimbursement?

The company, because you were reimbursed for the hotel already. Retaining the airline money without disclosure is typically a policy violation.

Who keeps the frequent flyer compensation miles?

Traveler, always. Miles accrue in personal FFP accounts. Goodwill miles offered as compensation are yours.

Can I keep EU261 cash if my corporate card paid the ticket?

Depends on policy. The ticket refund goes back to the card; the EU261 cash is a statutory penalty typically assigned to the passenger. Disclose and ask.

What if my company policy does not address compensation?

Silent policies default to traveler-keeps. Disclose the receipt to your expense administrator for transparency.

Is retaining an airline voucher without disclosure a firing offense?

In some companies yes, especially at senior level. Disclosure is the safe path regardless of policy clarity.

Does IDB compensation belong to the company?

Usually traveler, since it is statutory and tied to the specific passenger. Check your policy for any override.

← Back to blog

LegalApril 22, 2026•6 min read

Travel Policy vs Airline Compensation: Who Gets What

Travel policy vs compensation is a frequent source of friction between traveler and employer. Who keeps the EU261 cash? Who keeps the voucher? Who eats the hotel cost? The answer depends on your corporate policy language and whether the expense was company-paid or personally paid.

Travel Policy vs Compensation: The Core Question

Travel policy vs compensation is the tension between your employer's right to recover company-funded expenses and your right to statutory passenger compensation. The resolution almost always turns on your corporate policy language. Most Fortune 500 policies clearly state that airline reimbursements credit back to the company; most are silent on statutory compensation.

Read your policy before the trip. A 5-minute review ahead of time saves 60-minute disputes after a disruption.

Who Keeps What: Typical Split

›
Ticket refund (DOT 2024 rule, EU261/UK261 cancel refund): company, because the ticket was company-paid.
›
EU261 / UK261 cash compensation: typically traveler; some policies claim it.
›
Article 9 care (meals, hotel): whoever bore the out-of-pocket cost. If company reimbursed, then to company.
›
Vouchers: usually traveler, but some policies claim them for corporate travel budget.
›
IDB compensation: traveler, typically.
›
Trip delay insurance: policyholder (company for corporate insurance, traveler for personal).
›
Credit card trip delay: cardholder (company for corporate card, traveler for personal).

Disclosure Obligations

Virtually every Fortune 500 travel policy requires disclosure of airline reimbursements. Retaining a reimbursed item without disclosure is typically an expense-policy violation. In severe cases, it can be a firing offense. Always flag compensation and reimbursements to your expense administrator, even when policy is ambiguous.

See reimbursing business expense after a disruption for the filing order and per diem rules when a flight is delayed overnight for the per diem interaction.

Common Disputes

›
Whose voucher? Ambiguous, often argued by traveler and company. Check policy; if silent, disclose and ask.
›
EU261 compensation: traveler-leaning default, but policy can override.
›
Trip delay insurance: depends on who paid the premium or owns the card.
›
Personal frequent flyer miles: always traveler's (miles accrue in personal accounts).
›
Compensated upgrade: usually stays with traveler for personal use.

Documentation Workflow

1
Track all receipts and reimbursements.
2
Maintain a claim log mapping each expense to one payer.
3
Disclose all compensation received on expense reports.
4
Credit back reimbursed items per policy.
5
Keep personal compensation (EU261 cash) separately and disclose.

See missed client meeting due to flight delay: compensation reality for the business-impact layer.

When the Employer Tries to Claim EU261 Cash

Some corporate policies explicitly assign statutory compensation to the company as part of travel cost recovery. Those policies are enforceable as a condition of employment. If your policy is silent, the default is traveler. If your policy claims EU261 without explicit compensation, pushback is reasonable; but an explicit claim in policy is usually binding.

Pillar Link and Authority Sources

See the full pillar at Business Travel Flight Disruption Compensation. Primary sources: GSA FTR 41 CFR 301, Regulation (EC) 261/2004, and DOT Aviation Consumer Protection.

TravelStacks handles the airline side (DOT at $19 flat, EU261/UK261 at 25 percent). Start a claim in 30 seconds.

Think your flight qualifies?

Check in 30 seconds. Free to find out.

Check my flight