Outlets: Illegal to publicly display CAs

PETALING JAYA: Hotel, food and beverage associations have claimed that the requirement to display their collective agreements and employment contracts for public viewing is wrong because they are private pledges.

In a joint statement, the associations, including the Associated Chinese Chambers of Commerce and Industry of Malaysia (ACCCIM), said customers were already confused between service tax and service charge terms.

“The statement by the Domestic Trade, Cooperatives and Consumerism Ministry on CAs has added to the confusion.

“Service tax should rightfully be withdrawn and substituted by Goods and Services Tax (GST).

“Service charge, on the other hand, is a charge which has been imposed by hotels, restaurants and many other F&B outlets for the past 50 years and practised worldwide,” the statement said here yesterday.

The statement said as long as it was stated in the menu that a service charge was stipulated, customers were free to choose whether they want to patronise the outlet.

It said customers could not refuse to pay service charge after being served because they would be deemed to have agreed to the terms of service.

“The ministry’s advice to consumers that they can withhold payment of service charge is wrong in law of contracts and common law. Service charge supplements the employees’ income and the amount can be significant to their basic salary,” it said.

Ministry secretary-general Datuk Seri Alias Ahmad said recently that hotel and restaurant managements were required to display a service charge notice in their premises for the convenience of customers.

“Only operators who have collective agreements with their employees are allowed to impose service charge and we are still monitoring the matter,” he said.