Jul 15, 2024

Supreme Court revoked services charges in hotels, restaurants

Supreme Court revoked services charges in hotels, restaurants

KATHMANDU, Jan 26: The Supreme Court revoked the service charge as illegal. On Wednesday, the constitutional bench of the Supreme Court dismissed the writ against the service charge being taken by hotels, restaurants and other service providers. The Supreme Court has stated that some provisions of the Labor Act, which are charged in the name of service charge, are in conflict with the Constitution.

The bench of Acting Chief Justice Harikrishna Karki, Justices Bishwambhar Shrestha, Ishwar Khatiwada, Anand Mohan Bhattarai and Anil Sinha has canceled the provision with effect from January 25.

Earlier, a 10 percent service charge was added to restaurant and bar bills. It was arranged that the workers and their organizations would share the money. Until now, even the law had given them an exemption for charging in this way.

Section 87 of 3 of the Labor Act 2074 and Section 82 of the Labor Regulations allowed the collection of additional service charges. There was a provision that the service fee taken in that way should be distributed to the workers.

It is mentioned in the verdict that the said legal system is not fair and just from any point of view, including the provisions in Articles 44 and 115 of the Constitution, laws created for consumer protection, internationally accepted standards and issued guidelines.

"Unconstitutional laws are not valid, therefore the controversial law has to be declared invalid and null and void," the judgment said. Do not/do not charge fees according to the collective agreement and stop such actions.'