HC stays notice on service charges in hotels

Justice Tashi Rabstan of J&K High Court Jammu wing in a petition today stayed the communication about the service charges charged from the consumers in hotels.
HC stays notice on service charges in hotels

Justice Tashi Rabstan of J&K High Court Jammu wing in a petition today stayed the communication about the service charges charged from the consumers in hotels.

In the petition, employees of Lords Inn Hotel, filed through Adv Pranav Kohli had sought quashment of impunged notice LM/DC/(Enf.)/139-44 dated 26.10.2016 and notice, dated LM/DC (Enf.) 194-200/2016, dated 19/11/2016 issued by the Dy. Controller, Legal Metrology Weights and Measures Department, Jammu.

During the course of hearing Adv Pranav Kohli submitted that petitioners are working on monthly salary basis which are duly covered under the Minimum Wages Act. The Management of the Hotel also got the petitioners registered under the Employees State Insurance Act and Provident Fund. Management is paying regular Insurance as also provident fund @ 1.75% (ESI) and 12% (PF). 

The management also deposits their share of contribution and the installments are regularly being paid in the petitioners' accounts maintained with the respective department. 

The details of wages, employer's provident fund, ESI etc. paid for the petitioners in Form-XVII maintained by the Management and the Service Charge, so collected by the Hotel management is distributed amongst all the employees of the Hotel at the end of the month. Distribution of service charge is on pro-rata basis i.e. equal distribution amongst all staff members. The Management started paying the service charge to its employees / petitioners from the month of April, 2016. JNF

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