KUCHING: Malaysian Trades Union Congress (MTUC) Sarawak has welcomed the Federal Court decision that hoteliers are not entitled to utilise their employees’ service charge to satisfy their statutory obligations to pay the minimum wage or incorporate them into a clean wage structure.
“We agree with all the pronouncements made by the learned Justice,” said MTUC Sarawak secretary Andrew Lo.
“We are pleased that it is a unanimous decision and it sends a powerful message to employers to treat their employees fairly,” he added.
The Sarawak Bank Employees’ Union chief executive officer noted yesterday that in a unanimous judgment, the Federal Court on Wednesday dismissed the appeal by Crystal Crown Hotel & Resort Sdn Bhd against the National Union of Hotel, Bar & Restaurant Workers Peninsular Malaysia.
Federal Court judge Justice Datuk Nallini Pathmanathan said the 10 percent service charge did not belong to the hotel as the hotel acts as a trustee who holds on to the funds until distribution to beneficiaries, namely the eligible employees.