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    The OP is asking how exactly it will be "dealt internally between the airline and the handler" Commented Mar 4, 2023 at 19:28
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    Well, this is private business between airline and handler @JohnPardon Commented Mar 4, 2023 at 19:43
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    Yes . . . so what? Doesn't change the fact that you have not answered the question "can the airline cash in what they pay me from the handling agent?" Commented Mar 4, 2023 at 20:11
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    @Crazydre If they can recover compensation from the handler, sure, as I said in my answer, the airline is responsible for any action done in her name. Then, nothing is legally preventing them from internally recovering it, but this is done through contracts and everything else. I don't know if that's the case in every jurisdiction, but that may warrant a Law.SE Commented Mar 4, 2023 at 22:16
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    How a company internally deals with penalties is up to the company. Whether it is legal is an entirely different matter and is specific to local employment laws. You're worried that the handler will be penalized, but the likelihood of that happening is extremely low if the airline's finance and legal department are structured properly. Case-by-case penalties are a real nightmare to deal with, especially when you deduct pay, and I'm certain there are EU laws that cover this.
    – Nelson
    Commented Mar 14, 2023 at 5:45