Restaurants often do not pass on service charge to staff

over certain incentives in addition to our salaries. These are peanuts when compared to the amount they collect per bill per day.” A similar trend was noted by another waiter at a family restro bar in Noida. “Even if we get 50% of the share of service charge for the table we wait at, we would be in a better financial state. But we do not have any say in that. We just collect the amount and hand it over to the manager. We often request guests to tip us during Diwali or New Year, but they refuse, saying they have already paid service charge. We cannot argue further,” said a 45-year-old waiter, who did not want to be named.

Experts believe that employees will earn more if tips paid by customers are shared in a transparent manner. Their assertion comes after the Department of Consumer Affairs, in its recent circular on Monday, reiterated that the service charge payment was not mandatory and must be made discretionary. It also asserted that in case the diner was not satisfied, the amount should be waived.

The government clarified earlier in Parliament that the authorities could act against the defaulters who levy a service charge without the knowledge and consent of consumers on charges of indulging in “unfair trade practices”.

Several industry experts have welcomed the move, stating that it is a victory for the consumers. “In many western countries, the diner pays the tip depending on how satisfied he/ she is with the service. This practice pushes the hotel and restaurant employees to engage with the customers, which is missing here. I think this move will impose standards and facilitate healthy competitions,” said Rocky Mohan, founder of the Delhi Gourmet Club.

However, NRAI, which represents independent restaurants and chains, has opposed the Centre’s move, claiming that it has created unnecessary confusion. “The circular of the government has created unnecessary confusion among the public regarding levy of service charge. Levy of service charge is a totally legal process which has been recognised/ upheld through various judicial pronouncements including the Supreme Court of India,” claimed Riyaaz Amlani.

In England in December 2016, the former Masterchef judge Michel Roux Jr admitted that his Michelin-starred restaurant Le Gavroche did not pass on the service charge to his staff. Roux said that he regarded the 13% service charge as “revenue”.

Roux’s comment came after his chefs told the media that they were paid as little as 5.50 British pounds an hour and were expected to work 68 hours a week. Consequently, Roux apologised and said that he was “embarrassed and sorry”.