“Guidelines are not laws. The present statements by the government is causing unnecessary confusion in public, which is adversely affecting the smooth functioning of restaurants. It is once again reiterated that as of now levy of service charge by restaurants is legal and does not violate the provisions of Consumer Protection Act, 1986, since the same is mentioned in the menu / price list and informed to the customer. Levy of Service Charge directly benefits the 6 million people employed in the industry. Of these, more than 60% employees depend on service charge to augment upto 30% of their income. All the organised Food and Beverage operators employ the service charge method to ensure that all employees are beneficiaries of service charge and not just waiters but also cooks, Toilet attendants, and cleaners. Unless there is a legislation, restaurants will continue to levy service charge. ”
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Guidelines are not laws. Service charge in restaurants legal: Riyaaz Amlani, President, NRAI
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