emfizz.com
emfizz.com November 24, 2017


Service charge in hotels, restaurants not mandatory

22 April 2017, 01:06 | Jan Cross

Service charge in hotels, restaurants not mandatory

An employee sets a table inside a restaurant at the Crown Plaza hotel run by the Inter Continental Hotels Group, in New Delhi India

Announcing the new guidelines, Union Consumer Affairs Minister Ram Vilas Paswan said that the new guidelines have been approved by Prime Minister Narendra Modi's office and these are being sent to respective state governments for implementation.

Approving the guidelines on service charge, the Centre on Friday announced that service charge is completely voluntary and not mandatory.

According to an official from the Consumer Affairs Ministry, hotels can not levy service charge in the bill and it will be the customer's discretion weather to pay or not.

"A customer patronises a food outlet with the full knowledge that he or she will be levied a service charge". The state governments were instructed to ensure restaurant owners inform their customers about service charge not being mandatory.

The guidelines in service charge, issued by the Consumer Affairs Ministry, state that restaurant may leave the service charge column of the bill blank for the customer to fill up before making payment. "Govt has approved guidelines on Service Charge".

Hotel and restaurant associations, however, were unhappy with the guidelines. The present statement is causing unnecessary confusion among the public, adversely affecting restaurants.

Syria's Assad still has chemical weapons, says Israel
The Turkish government said autopsies on victims brought over the border confirmed chemical weapons had been used. Briefing reporters, he said Israel estimates Assad still has "between one and three tons" of chemical weapons.


Wall St climbs as earnings gather pace; AmEx boosts Dow
Philip Morris PM.N fell 3.8 percent to $109.53 after the tobacco maker's first-quarter profit forecast fell below estimates. The Nasdaq composite surged 53.74 points, or 0.9 percent, to 5,916.78.


Conte: Chelsea now have 50-50 shot at title
Marcus Rashford and Ander Herrera's goals were scored with United's first shots on target against the Blues. We need to realise it's not over, we need to realise there are points to play for, and we have to dig in.


The guidelines make it clear that service charge, tip or gratuity is a "separate transaction between the customer and the staff of the hotel or restaurant, which is entered into, at the customer's discretion".

Many consumer rights groups have been filing complaints with the government to end this unfair practice.

"Our Department's view is that imposing service charge is an unfair trade practice and consumers need not pay".

A new consumer protection bill is in the works and it may resolve the issue of whether service charge is an unfair practice.

Last week, Paswan had said the ministry had prepared an advisory on the service charge issue and the same was sent to the PMO for approval. The charge is neither hidden nor disguised.

Riyaaz Amlani, President, National Restaurant Association of India, said: "Guidelines are not laws". "All employees are beneficiaries of service charge, not just waiters but also cooks, toilet attendants and cleaners. We can not understand why we are being singled out".



Other News

Trending Now

Lowry bounces back as Raptors even series with Bucks
In each game, the team with the home court advantage is looking to win their first game and swing back the series in their favor. After thoroughly falling apart in the fourth quarter of Game 1 , they were better down the stretch of Game 2 , and when P.J.

Ronaldo hails Real mentality in Bayern win
We kept a cool head. "There is only one way to win the Champions, which is to keep insisting, insisting and insisting again". Everybody played their part. "We wanted to go through and I'm angry because of the referee deciding a high intensity game".

Giants ace Madison Bumgarner on DL after dirt bike accident in Colorado
He will be re-evaluated next week but is expected to miss 6 to 8 weeks, according to a report by Fox Sports' Ken Rosenthal. This is Bumgarner's first trip to the disabled list in his nine-year major league career.

Police Officer Killed, Two Injured In Shooting
The attacker was targeting police near the Franklin Roosevelt subway station, a police spokeswoman told the Associated Press . Francois Fillon, who is the conservative candidate, said he would cancel the campaign events he had been planning for Friday.

Le Pen urges government to immediately reinstate French borders after Paris attack
A man walks past French presidential campaign posters displayed in Marnes-la-Coquette, outside Paris , Thursday, April 20, 2017. Fillon had improved to 19.5 percent while Melenchon had reached 19 percent, narrowing the gap with the frontrunners.

Facebook focuses on the developer community at F8
Snap users simply tap the screen to look through the available World Lenses , which will be updated and changed on a daily basis. Facebook first showed outward interest in the AR and VR world when it purchased Oculus VR for $2 billion in 2014.

Bill O'Reilly Leaves Fox News, Tucker Carlson Takes His Slot
Off-camera unseen forces raged against him, culminating in Fox News Channel's admission today that O'Reilly is getting the boot. The move came after reports of sexual harassment, which began earlier this month with a New York Times story .

Ibrahimovic ruled out for rest of season
Roared on by their raucous away support, Anderlecht gave United several scares before finally succumbing in the 107th minute. Both were substituted with knee injuries during United's Europa League extra-time win over Anderlecht yesterday.

Venezuela seizes nation's only GM factory
General Motors said Thursday it will stop doing business in Venezuela after authorities took control of its only factory there. The cash-strapped government has choked off auto companies' access to dollars needed to import parts and repatriate profits.

Only 34 New England Patriots showed up to meet Trump
According to the team, the comparison photo suggests a significantly smaller turnout for Trump's celebration. Not mentioned by Trump were the many absent players. "It was a complete team effort".