What happens to business trip airline tickets after a layoff?
January 16, 2015 11:18 PM Subscribe
I'm getting laid off next month. What will happen, or should happen, to the nonrefundable airline tickets that have been booked in my name, on the company dime, for future business travel?
I work for a small private company (LLC) in Virginia. I have been notified that the company is restructuring and I'm one of the people slated to be laid off in the middle of February.
There are three nonrefundable, economy class airline tickets that have been booked in my name for business travel that I presumably won't be doing now. All tickets are booked on major, US-based airlines. One is for a trip to Canada that was supposed to happen recently; I had to cancel due to illness and was told the credit could be rebooked later for a change fee. The other two are for future trips within the US. As far as I know, there was no trip insurance purchased for any of these tickets.
My understanding is that nonrefundable airline tickets can be rebooked for a different itinerary for the same passenger (for a change fee), but generally cannot be switched to another person's name, so these tickets are a sunk cost for my boss.
In this kind of situation, what typically happens to the unused airline credit? What should happen? Is there a customary way of handling this situation? Do airlines bend their rules in the case of business travel when the person stops working for the company that paid for the airfare?
What I would like to happen here is to pay the change fees out of my own pocket and use the already-paid airfare for personal travel. I don't think my boss would view that as fair, but I don't know that there's any way for him to recover the costs of the tickets. I have thought about arranging the itinerary changes quietly and just not consulting him—he's not much of a detail guy and it might never occur to him to follow up on the fate of the airline tickets—but I imagine that could be construed as stealing from the company. I guess a third option would be to offer to buy the tickets from him at a discounted rate, and negotiate a rate that's a travel bargain for me but lets him recoup some of his costs. Any advice?
I work for a small private company (LLC) in Virginia. I have been notified that the company is restructuring and I'm one of the people slated to be laid off in the middle of February.
There are three nonrefundable, economy class airline tickets that have been booked in my name for business travel that I presumably won't be doing now. All tickets are booked on major, US-based airlines. One is for a trip to Canada that was supposed to happen recently; I had to cancel due to illness and was told the credit could be rebooked later for a change fee. The other two are for future trips within the US. As far as I know, there was no trip insurance purchased for any of these tickets.
My understanding is that nonrefundable airline tickets can be rebooked for a different itinerary for the same passenger (for a change fee), but generally cannot be switched to another person's name, so these tickets are a sunk cost for my boss.
In this kind of situation, what typically happens to the unused airline credit? What should happen? Is there a customary way of handling this situation? Do airlines bend their rules in the case of business travel when the person stops working for the company that paid for the airfare?
What I would like to happen here is to pay the change fees out of my own pocket and use the already-paid airfare for personal travel. I don't think my boss would view that as fair, but I don't know that there's any way for him to recover the costs of the tickets. I have thought about arranging the itinerary changes quietly and just not consulting him—he's not much of a detail guy and it might never occur to him to follow up on the fate of the airline tickets—but I imagine that could be construed as stealing from the company. I guess a third option would be to offer to buy the tickets from him at a discounted rate, and negotiate a rate that's a travel bargain for me but lets him recoup some of his costs. Any advice?
One caveat: how were they booked? I work for a giant multinational, so not exactly the same thing as the LLC you work for, but when I book work travel, I have to book through a well known travel agency that has contracted with my company. If I can't travel for some reason, the travel agency takes them back and through some weird magic absorbs the cost back into themselves and churns it back out as credit to the company that they can use for someone else's flight. I have a trip booked to NY later this year, and if I was laid off, that ticket would be magically reabsorbed back into the system, never to be seen again.
However, if you aren't dealing with some weird hocus-pocus system, I like disillusioned's suggestion quite a bit.
posted by RogueTech at 12:19 AM on January 17, 2015 [5 favorites]
However, if you aren't dealing with some weird hocus-pocus system, I like disillusioned's suggestion quite a bit.
posted by RogueTech at 12:19 AM on January 17, 2015 [5 favorites]
They certainly don't care that a business laid off an employee.
I don't think this is always true. I think if it's a business with more than, say, 100k employees and an in-house travel agency, they could probably find a way to bend the rules. I couldn't believe how many supposedly impossible things Microsoft's travel agent made happen when they were booking last-minute interview tickets for me. For your small LLC, though? No chance.
I think these tickets are yours. Worst case, someone will remember they exist and ask you to cut the company a check for what they cost. And I think you would definitely have a leg to stand on if you refused. Please update this thread with what you end up doing! It is indeed a strange situation.
posted by town of cats at 12:20 AM on January 17, 2015 [4 favorites]
I don't think this is always true. I think if it's a business with more than, say, 100k employees and an in-house travel agency, they could probably find a way to bend the rules. I couldn't believe how many supposedly impossible things Microsoft's travel agent made happen when they were booking last-minute interview tickets for me. For your small LLC, though? No chance.
I think these tickets are yours. Worst case, someone will remember they exist and ask you to cut the company a check for what they cost. And I think you would definitely have a leg to stand on if you refused. Please update this thread with what you end up doing! It is indeed a strange situation.
posted by town of cats at 12:20 AM on January 17, 2015 [4 favorites]
It's certainly tempting, especially since you doubt your boss will think of checking on the tickets' fate, but unless you paid for them (expecting to be repaid be the company later), I've really got to suggest you drop the entire idea. So WHAT if the company that's about to lay you off loses anything they've paid on the tickets?!? Better the company loses them than you risk some sort of charges for theft or diversion of company funds --- remember, you're about to be looking for another job, and you might need this one for references.
On the other hand, if you do ask your boss and he gives you permission, GET IT IN WRITING before you change anything.
posted by easily confused at 1:58 AM on January 17, 2015 [10 favorites]
On the other hand, if you do ask your boss and he gives you permission, GET IT IN WRITING before you change anything.
posted by easily confused at 1:58 AM on January 17, 2015 [10 favorites]
If I were your boss, I would see it as absolutely fair that you kept the tickets, especially the one where you already have a credit, since we were laying you off and we couldn't get reimbursement anyway. But, it sounds like your boss might not be as easygoing as I am.
What I would do in your situation: I would not mention the already- credited ticket, since the credit already appears under my name and I would consider it "mine." Then, in the course of discussion over wrapping up my files, etc, I would note in an e- mail that I had cancelled the other two tickets because those trips were to take place after my departure. At that point, it becomes up to the boss to work whatever voodoo they can to get the credits for the company. If the credit came to me later, I would assume that they didn't care or had decided to give it to me (or that would be the story I would stick to if asked, and I would only discuss it if it were raised directly).
Just a side note, make sure before you go that the tickets are connected to your frequent flyer number and that they have a way to notify you that does not involve the company, just in case the notifications come in after your departure.
posted by rpfields at 2:29 AM on January 17, 2015 [1 favorite]
What I would do in your situation: I would not mention the already- credited ticket, since the credit already appears under my name and I would consider it "mine." Then, in the course of discussion over wrapping up my files, etc, I would note in an e- mail that I had cancelled the other two tickets because those trips were to take place after my departure. At that point, it becomes up to the boss to work whatever voodoo they can to get the credits for the company. If the credit came to me later, I would assume that they didn't care or had decided to give it to me (or that would be the story I would stick to if asked, and I would only discuss it if it were raised directly).
Just a side note, make sure before you go that the tickets are connected to your frequent flyer number and that they have a way to notify you that does not involve the company, just in case the notifications come in after your departure.
posted by rpfields at 2:29 AM on January 17, 2015 [1 favorite]
You will never regret being 100% honest in your business dealings. Talk to whomever is in charge of expenses and ask specifically about these tickets. They may let you cancel and keep the difference. At my last company airline tickets were paid for on a master account and thus refund money was kept in a pool.
Since you don't know, find out and do this above board.
posted by Ruthless Bunny at 4:45 AM on January 17, 2015 [35 favorites]
Since you don't know, find out and do this above board.
posted by Ruthless Bunny at 4:45 AM on January 17, 2015 [35 favorites]
Small Private Company paid for these tickets so that you could perform your job; SPC owns them and their value even if they are in your name. However, SPC can probably* not retrieve any of their value; due to airline credit policies only you can use it.
I'd be upfront about it with the boss (in a documented way). Unless circumstances are such that they can somehow get some value out of them you're likely to get the green light to use them free of moral concern. Make sure you contact the airline(s) about the two future flights before the departure dates and cancel the flights or the value will be lost.
* e.g. RogueTech's comment
posted by achrise at 6:54 AM on January 17, 2015
I'd be upfront about it with the boss (in a documented way). Unless circumstances are such that they can somehow get some value out of them you're likely to get the green light to use them free of moral concern. Make sure you contact the airline(s) about the two future flights before the departure dates and cancel the flights or the value will be lost.
* e.g. RogueTech's comment
posted by achrise at 6:54 AM on January 17, 2015
Instead of assuming what can happen to the tickets, you might call the airline and/or travel agency and ask hypothetically about the "nonrefundable" rules to see if a company is allowed to change the itinerary and/or issue them in the name of a different employee.
Having that information would give you a better leg to stand on when you are upfront with the boss to discuss the fate of these tickets. Just like you can negotiate your compensation when you join a company, you can also negotiate (at least a little) when you leave. True, you don't really have any leverage, but managers often feel shitty when they have to lay off employees, and if you suggest a small thing they can do to make your life a bit nicer without costing the company much money, they may agree to it.
If you decide to stay quiet, make sure you have enough cash on hand to reimburse the company up to a year later when they do their books and discover the error, and hope that they don't press criminal charges.
posted by CathyG at 7:46 AM on January 17, 2015 [1 favorite]
Having that information would give you a better leg to stand on when you are upfront with the boss to discuss the fate of these tickets. Just like you can negotiate your compensation when you join a company, you can also negotiate (at least a little) when you leave. True, you don't really have any leverage, but managers often feel shitty when they have to lay off employees, and if you suggest a small thing they can do to make your life a bit nicer without costing the company much money, they may agree to it.
If you decide to stay quiet, make sure you have enough cash on hand to reimburse the company up to a year later when they do their books and discover the error, and hope that they don't press criminal charges.
posted by CathyG at 7:46 AM on January 17, 2015 [1 favorite]
Yes, Southwest does let you use the credit for another passenger. I don't know about any other airlines though and you're probably right that they wouldn't but I think you should double check this with the airlines in question first.
posted by aadm at 7:54 AM on January 17, 2015
posted by aadm at 7:54 AM on January 17, 2015
up to a year later when they do their books and discover the error, and hope that they don't press criminal charges.
Yep! Datapoint: A while ago, I worked with someone who resigned from the company we were working for and then quietly used their credit from canceled flights to buy airfare to a fabulously sunny vacation spot, thinking no one would notice. Someone eventually noticed. Old employee had to pay back every cent. It was rather embarrassing for the employee and recovering the money was a total pain for all concerned.
Seconding Ruthless Bunny that you should just ask to make sure it's clear and you can use them in good conscience.
posted by mochapickle at 8:06 AM on January 17, 2015 [4 favorites]
Yep! Datapoint: A while ago, I worked with someone who resigned from the company we were working for and then quietly used their credit from canceled flights to buy airfare to a fabulously sunny vacation spot, thinking no one would notice. Someone eventually noticed. Old employee had to pay back every cent. It was rather embarrassing for the employee and recovering the money was a total pain for all concerned.
Seconding Ruthless Bunny that you should just ask to make sure it's clear and you can use them in good conscience.
posted by mochapickle at 8:06 AM on January 17, 2015 [4 favorites]
The company I work for books through a travel agency. When an employee that had a trip scheduled left the company, we called the travel agency and they were able to cancel the airfare. I am now traveling using the credit from that former employee's trip.
The right thing to do is to work with your company to dispatch the tickets properly. They are not your property. Let the company decide who gets them.
posted by crazycanuck at 9:52 AM on January 17, 2015 [1 favorite]
The right thing to do is to work with your company to dispatch the tickets properly. They are not your property. Let the company decide who gets them.
posted by crazycanuck at 9:52 AM on January 17, 2015 [1 favorite]
I got non refundable tickets refunded (as credit) due to being in the hospital. It is totally possible to call the airline and explain the situation. They might require some verification of the situation (I provided my doctor's contact information; I have no idea whether they called but she said she would be happy to confirm that I was unable to travel). Non refundable, in my experience, doesn't always mean that they don't take unusual circumstances into consideration.
posted by peanut_mcgillicuty at 11:26 AM on January 17, 2015
posted by peanut_mcgillicuty at 11:26 AM on January 17, 2015
So, business travel expenses like plane tickets are basically money.
On the one hand, these are sunk costs for the company, and it seems virtually impossible that they would be able to transfer the tickets into another employee's name or otherwise "liquefy" the money that these tickets represent. Most likely when they determined that your position would be eliminated, they either factored in the loss of the tickets, or it's chump change to the company and doesn't matter at all. All of which implies that, if they like you and you're leaving on good terms and they're sane people, it should be fine to ask if you can use the tickets despite being laid off.
On the other hand, yeah, dude, plane tickets are money. Why should they give you this money?
Also, while the tickets are "nonrefundable", depending on how the travel was booked and the nature of the trip, they might be more refundable than you'd think. Nthing that if these were booked through a travel agent, there is probably some kind of magic that means the money in the form of these tickets is more liquid than it would be if you had bought these tickets as a regular person for a vacation or something, and thus it doesn't make financial sense for them to give you this freebie.
Bottom line, this feels like a "couldn't hurt to ask" situation, assuming your relationship with the players involved is good. The worst that could happen is that they could explain that, no, nonrefundable doesn't really mean not refundable.
posted by Sara C. at 1:28 PM on January 17, 2015
On the one hand, these are sunk costs for the company, and it seems virtually impossible that they would be able to transfer the tickets into another employee's name or otherwise "liquefy" the money that these tickets represent. Most likely when they determined that your position would be eliminated, they either factored in the loss of the tickets, or it's chump change to the company and doesn't matter at all. All of which implies that, if they like you and you're leaving on good terms and they're sane people, it should be fine to ask if you can use the tickets despite being laid off.
On the other hand, yeah, dude, plane tickets are money. Why should they give you this money?
Also, while the tickets are "nonrefundable", depending on how the travel was booked and the nature of the trip, they might be more refundable than you'd think. Nthing that if these were booked through a travel agent, there is probably some kind of magic that means the money in the form of these tickets is more liquid than it would be if you had bought these tickets as a regular person for a vacation or something, and thus it doesn't make financial sense for them to give you this freebie.
Bottom line, this feels like a "couldn't hurt to ask" situation, assuming your relationship with the players involved is good. The worst that could happen is that they could explain that, no, nonrefundable doesn't really mean not refundable.
posted by Sara C. at 1:28 PM on January 17, 2015
Oh and needless to say you should be absolutely above-board. Talk to whoever was sending you on this trip. Formally ask if you can still use the tickets. Don't call the airline yourself to arrange everything behind the company's back.
Because, yeah, somebody is going to know that this happened. The idea that nobody would remember you were taking this business trip is laughable. Either the company is small enough that business travel expenses are tracked closely, or it's large enough that there's a travel agency that can move tickets around at will.
Just going right ahead and stealing from your company is the sort of thing that makes bad references going forward.
posted by Sara C. at 1:35 PM on January 17, 2015
Because, yeah, somebody is going to know that this happened. The idea that nobody would remember you were taking this business trip is laughable. Either the company is small enough that business travel expenses are tracked closely, or it's large enough that there's a travel agency that can move tickets around at will.
Just going right ahead and stealing from your company is the sort of thing that makes bad references going forward.
posted by Sara C. at 1:35 PM on January 17, 2015
Yeah, if the company does a lot of travel, it's possible there are arrangements in place that aren't available to the general consumer. Also, any potential future employer is going to want to speak to someone at your current company.
Ask your boss - explain the situation, provide copies of the documentation about the bookings. In a small company, odds are they have no way to access them and are likely to agree that you should take the credit with you. Hopefully, they wouldn't be so low as to suggest the credit is deducted from your last pay ...
If nothing else, being honest about the situation and reporting it appropriately will leave a nice impression and that may lead to a better reference if one is needed. When asking for references, it's not uncommon to ask integrity-related questions and this would be a fantastic example to come up in a reference.
The tickets/credit belong to the company. Taking without asking is stealing - never a good thing to come up in a reference.
posted by dg at 2:33 PM on January 17, 2015
Ask your boss - explain the situation, provide copies of the documentation about the bookings. In a small company, odds are they have no way to access them and are likely to agree that you should take the credit with you. Hopefully, they wouldn't be so low as to suggest the credit is deducted from your last pay ...
If nothing else, being honest about the situation and reporting it appropriately will leave a nice impression and that may lead to a better reference if one is needed. When asking for references, it's not uncommon to ask integrity-related questions and this would be a fantastic example to come up in a reference.
The tickets/credit belong to the company. Taking without asking is stealing - never a good thing to come up in a reference.
posted by dg at 2:33 PM on January 17, 2015
Something like this happened to me recently, though I quit rather than being laid off. I had a $1,100 ticket with United that was in my name and non-refundable. $200 allows me to book it wherever I want it to send me, but I couldn't get it out of my name or return it to the company. I brought it up, and the deal we brokered was that they'd pay me in cash for half of the ticket cost plus the change fee, since if I had my druthers I wouldn't have $1,100 tied up in United Bucks (I paid for the ticket initially and was set to be reimbursed). So now I have a $1,100 ticket for the cost of $500 to me. Probably headed to Belize in September.
posted by craven_morhead at 4:19 PM on January 17, 2015 [1 favorite]
posted by craven_morhead at 4:19 PM on January 17, 2015 [1 favorite]
Mod note: One comment deleted. Hey, sorry, but "piggybacking" questions is not allowed; you can go ahead and make a post with your question once you you've been here a week.
posted by taz (staff) at 4:12 AM on August 8, 2015
posted by taz (staff) at 4:12 AM on August 8, 2015
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They're non-refundable, and you're right: airlines don't allow name changes, with almost no exceptions. (Southwest might be better about it, for instance.)
You'll have to pay the change fee to switch the itinerary, or to cancel the ticket. Ha. Hahaha. Hahahahaha. No. They don't care. Why would they? Non-refundable means they don't have to care. They barely care about a death in the family and require you to actually submit a death certificate. They certainly don't care that a business laid off an employee.
Attach the tickets to your airline account/frequent flyer account. Then cancel the flight. The credit should be returned back to you (depending on how the airline handles this).
Consider it a bump to your severance. There isn't anything the boss would be able to do about it anyway, if he even noticed. It's not "stealing from the company." They're your tickets now.
posted by disillusioned at 11:37 PM on January 16, 2015