For employees of hotels and many restaurant, over and above their salary (which is rather low), they also get 'service charge' . In Malaysia, there is usually no 'tips' - but there is service charge, being normally a percentage over and above the payments made by customers for their hotel stay, food, drinks, etc.. (it is clearly stated in your bills). Now service charges are payments made by the 'customer' and not the employers - but alas, many employers still take a percentage of this for their services of administering these moneys of the workers.
Now with minimum wages becoming a right in Malaysia, some of these employers tried not to increase the basic wages of workers to the required minimum wages of RM900, but tried to include 'service charge' in their computation of minimum wage. Of course, hotel employees and their unions were not happy. (See the link below to understand more about service charge...).
This recent court judgment settles this issue - employee shall be paid the minimum wage, as per the Minimum Wage Act which came into effect last year, on top of the service charge.
The news report is misleading, the Union that took up the case and won, I believe, was
Union wins landmark case for minimum wage
Posted on 31 July 2014 - 08:34pm
Last updated on 31 July 2014 - 09:13pm
Last updated on 31 July 2014 - 09:13pm
PETALING JAYA: The Malaysian Trades Union
Congress (MTUC) applauded a recent landmark judgment handed down by the
industrial court on a hotel's employee salary structure.
Its president, Mohd Khalid Atan, told theSun today that the decision made last month is a precedent which should be followed by others in the hospitality industry.
In the written judgment, the court held that an employee shall be
paid the minimum wage, as per the Minimum Wage Act which came into
effect last year, on top of the service charge imposed.
In addition, the court also decided that the hotel would retain 10%
of the total service charge imposed on all its monthly bills and the
remaining 90% will be fully distributed to all employees covered within
the scope of the decision made.
The case arose because there was a salary dispute between the two parties – the hotel and the employees.
The employees had insisted that their salaries be structured in line
with the Act and be separated from the 10% service charge imposed on
billings to customers.
According to the written judgment, with effect from Oct 1 last year,
every employee shall be paid according to the new outlined salary
structure except for part-timers, temporary, casual and retired
employees.
It also stated that the minimum wages should be implemented with
immediate effect as the hotel is a member of the Malaysian Association
of Hotels (MAH).
The decision follows after the Act came into effect last year with
the implementation of the minimum wages of RM900 in Peninsular Malaysia
and RM800 in East Malaysia.
The union's industrial relations adviser Lim Chooi Phoe said he was glad because the employees are benefiting from the outcome.
He believes that currently there are 24 hotels nationwide facing the
same problem regarding salaries which are being brought up to the
industrial court.
At press time, MAH and Malaysian Association of Hotel Owners (Maho) could not be reached for comments on the matter - The Sun Daily, 31/7/2014, Union wins landmark case for minimum wage - http://www.thesundaily.my/news/1128968
For background, see
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