The Restaurant and Bar Association of Nepal (REBAN) has called the agitating restaurant workers for talks regarding the 10 percent service charge.

Citing that restaurants are ready to assure that workers get all the tips that are collected in hotels and restaurants and that REBAN will facilitate the process of implementing the minimum wage prescribed by the government for restaurant workers, the association has asked restaurant workers to come for talks instead of launching any protest activities.

“We have scrapped the 10 percent service charge being levied on diners to facilitate customers and help promote the restaurant and hotel business. As we had been receiving numerous complaints from our patrons regarding the extra charge being levied we decided to do away with the service charge,” said Pramod Kumar Jaiswal, president of REBAN.

Trade unions of different political parties related with the restaurant business have been threatening to shut down restaurants and bars across the country from Tuesday if the decision to scrap the 10 percent service charge for diners is not revoked.

Citing that REBAN decided to scrap the 10 percent service charge that is being levied by eateries without consulting trade unions and the decision will affect restaurant and bar employees, trade unions have asked the association to revoke its decision.

“The 10 percent service charge was being collected from diners since almost one decade as per the agreement between REBAN and workers. However, REBAN unilaterally decided to scrap the provision and we will not tolerate this,” the restaurant workers’ unions had stated on Friday.

They have warned that they will halt the operation of those restaurants and bars that implement the decision of REBAN and completely shut down restaurants across the country from Tuesday. Customers had been paying additional 23 percent charge for what they eat in restaurants and other eateries —13 percent value added tax (VAT) and 10 pe cent service charge. Scrapping the 10 percent service charge means that diners will now have some financial relief at restaurants.

Published on: 4 February 2019। The Himalayan Times