Federal Court rules hotels cannot utilise 10% service charge to meet minimum wage


KUALA LUMPUR: The Federal Court has ruled that hoteliers must pay their employees the minimum wage without utilising the 10% service charge paid by customers.

In a summary judgment shared with the media here on Wednesday (March 24), Federal Court judge Justice P. Nallini said the service charge, being monies collected from third parties, does not belong to the hotel.

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