Starting today, hotels and restaurants that do not have a employer-employee collective agreements will not be allowed to charge for service.
The Star Online reports that this was an temporary rule, which the government decides on the best way to handle the issues surrounding the 10 percent service charge.
“At present, there is no official body or ruling that regulates the collection of service charge. It is an age-old international practice. However, as we have received many complaints from consumers, we came to this decision,” Domestic Trade and Consumerism secretary-general Datuk Seri Alias Ahmad reported said today.
He also stressed that it was businesses must be explicit about service charges — by pinning up clear displays — so that customers know what they’re getting into.
“It is important for consumers to know what sort of service they are getting if these places are charging for service,” he was quoted further.
