HC stays LMD order on service charges

Excelsior Correspondent
JAMMU, Dec 12: High Court has stayed the communication directing the hotels not to take service charges from the consumers.
The stay was granted in a petition filed through employees of Lords Inn Hotel seeking quashment of the notice impugned bearing No. LM/DC/(Enf.)/139-44 dated 26.10.2016 and notice dated LM/DC (Enf.) 194-200/2016, dated 19/11/2016 issued by the Deputy Controller, Legal Metrology Department.
During the course of hearing Advocate Pranav Kohli submitted that 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.
“Management is paying regular insurance as also Provident Fund at the rate of 1.75% (ESI) and 12% (PF). The service charges so collected by the hotel management are distributed amongst all the employees of the hotel at the end of the month. Distribution of service charges is on pro-rata basis i.e. equal distribution amongst all staff members”, the counsel for the petitioners said, adding “the management started paying the services charges to its employees / petitioners from the month of April 2016”.
After hearing the counsel for the petitioner, Justice Tashi Rabstan stayed the communication asking hotel not to take service charges from the consumers.


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