Wonder whether this whole focus suddenly on 'service charge collected by employers and paid to workers' is nothing more that a distraction GST and related issues...
Service Charge is very different from Service Tax. Taxes go to the government, whilst this service charge goes to the employees...Service Tax have been replaced by GST... but service charge, which is no tax, remains as it should...
“The rationale behind the introduction of service charge was a combination of a desire to replace cash tips given by hotel and restaurant patrons to employees for services rendered as well as a need to ensure that employees other than front line employees and those who come into direct contact with patrons and customers would also receive their fair share of the tips.” - Kesatuan Kebangsaan Pekerja-Pekerja Hotel, Bar & Restoran, Semenanjung Malaysia v. Hotel Equatorial (M) Sdn Bhd  3 ILR 590 (Award No. 1356 of 2008) at p. 601
“The better the service provided, the more the employer receives by way of sales and employees are rewarded for the better service.”- Pudu Sinar Sdn Bhd v. National Union of Hotel, Bar & Restaurant Workers, Peninsular Malaysia  1 ILR 833 (Award No. 241 of 2002) at p. 836
The Domestic Trade, Co-operatives and Consumerism (Ministry has recently issued a directive on the service charge imposed by restaurant and hotel operators that the 10 percent service charge must be stipulated in the collective agreement (CA) between employers and employees before businesses can impose the service charge... In addition, the outlet must display the certificate on their premises so that the consumer will know they will have to pay the service charge; otherwise they will be charged under Price Control and Anti-Profiteering Act 2011.
Suspend gov't decision on service charge
LIM KOK CHEONG is president of the Associated Chinese Chambers of Commerce and Industry of Malaysia.
Source:- Malaysiakini, 11/4/2015, Suspend gov't decision on service charge
See earlier related post:-