According to the ministry, there are only 93 companies in the hospitality and food and beverage industry that are entitled to collect the service fee. PUTRAJAYA: From Monday, restaurants and hotels will not be able to collect service fees unless they have employer-employee collective agreements. Agreements are usually field-specific. They include the conditions of employment of office workers working for example in the field of financing, information technology services, construction, metallurgy or data reporting. Companies that do not have a collective agreement on service rates, but continue to collect it, are charged under the anti-profit law.  Case No. 23(7) (13)/2-228/15, Arbitration Award No. 1196 of 2018 of 28 May 2018 The service charges levied on the proceeds of the sale of the hotel are distributed against Kesatuan Kesatuan Kebangsaan Pekerja-Pekerja Hotel in accordance with the collective agreement between the hotel and the Union Crystal Hotel Crown & Resort Sdn Bhd (Crystal Crown Hotel Petaling Jaya) against Kesatuan Kebangsaan Pekerja-Pekerja Hotel Hotel, Bar & Restoran Semenanjung Malaysia  1 LNS 1450 Bharat Bank vs. Employees of Bharat Bank  SCR 459 Section 30(4) Provides that, in its decision on a commercial dispute, the Court shall take into account the public interest, the financial impact and the impact of the arbitral award on the economy of the country. and on the sector concerned, as well as on the likely effects in related or similar sectors. The Industrial Court of Malaysia (“the Tribunal”) in Kesatuan Kebangsaan Pekerja-Pekerja Hotel, Bar dan Restoran, Semenanjung Malaysia against Subang Jaya Hotel Development Sdn Bhd (Grand Dorsett Subang Hotel)  (“Grand Dorsett Case”) recently issued an award in favour of the hotel regarding the inclusion of service charges in the calculation of wages to meet the statutory minimum wage requirement MYR1000, in accordance with the Minimum Wage Regulation 2016 (“MWO”).
The food will be less painful for the bag when stricter rules on service fees come into effect, most likely early next year. Alias said that in the absence of specific rules to enforce the judgment, business owners continued to arbitrarily notify the notification and charge their customers for the service. The Malaysian Labour Court ruled on the inclusion of service fees in the calculation of wages in accordance with the minimum wage requirement. In this article, we look at the facts, problems, and decisions of the case. The Secretary-General of Internal Trade and Consumer Affairs, Datuk Seri Alias Ahmad, said the order was temporary until the government found a way to regulate the collection of service fees. In addition, there are generally binding collective agreements. . . .