STATE TIMES NEWS
JAMMU: Justice Tashi Rabstan of J&K State High Court on Monday stayed the communication asking hotels for not charging service charges from the consumers.
The Justice was hearing a petition filed through employees of Lords Inn Hotel, in which Advocate Pranav Kohli sought quashment of notices impugned bearing Nos. LM/DC/(Enf.)/139-44 dated 26th October, 2016 and LM/DC (Enf.) 194-200/2016 dated 19th November, 2016 issued by the Deputy Controller, Legal Metrology Weights and Measures Department, Jammu.
During the course of hearing, Advocate Pranav Kohli submitted that the 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.
He further stated that the Hotel management pays regular Insurance and Provident Fund @ 1.75% (ESI) and 12% (PF) respectively. The management also deposits their share of contribution and pays regular installments 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.
Advocate Pranav Kohli informed the Court that the 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.
