Court Suggests Name Change For "Service Charge" To "Staff Welfare Fund"
NDTV
The Delhi High Court said that the term service charge gives the impression that it is a government-imposed charge
The Delhi High Court on Wednesday asked the body representing the restaurants and hotels to consider changing the term 'service charge' to 'staff welfare fund' or 'staff welfare contribution'.
The High Court said that the term service charge gives the impression that it is a government-imposed charge.
Justice Prathiba M Singh asked the two bodies (NRAI and FHRAI) to hold a meeting of their members and inform the Court how many of their members are willing to inform the consumers that service charge is not mandatory and is a voluntary contribution.
The Court also asked the bodies to inform it about the number of hotels and restaurants imposing service charges.
