Dear Expert, Service Charges recovered from Customer by Hotel/Restaurant and paid to the employees every month is Wages under ESIC Act? Please advice.
From India, Mumbai
Acknowledge(0)
Amend(0)
1From India, Mumbai
Acknowledge(0)Amend(0)
You have raised an important legal issue on which there is a Honorable Supreme Court judgment from the year 2007 in Quality Inn Southern Star's case. The copy of said judgment is attached herewith for your information.
However, I am not sure whether the above judgment is still applicable today or whether it has been overruled. Therefore, I suggest that you take up the matter with the appropriate Regional/Sub/Divisional Office of ESIC where your unit is covered. Seek their approval or opinion by indicating that as per their circulars and the Honorable Court decision, no contribution on such "service charges" as collected from customers and paid later on to the staff is payable under the ESI Act, 1948.
Regards.
From India, Noida
Acknowledge(0)Amend(0)
However, I am not sure whether the above judgment is still applicable today or whether it has been overruled. Therefore, I suggest that you take up the matter with the appropriate Regional/Sub/Divisional Office of ESIC where your unit is covered. Seek their approval or opinion by indicating that as per their circulars and the Honorable Court decision, no contribution on such "service charges" as collected from customers and paid later on to the staff is payable under the ESI Act, 1948.
Regards.
From India, Noida
Acknowledge(0)Amend(0)CiteHR is an AI-augmented HR knowledge and collaboration platform, enabling HR professionals to solve real-world challenges, validate decisions, and stay ahead through collective intelligence and machine-enhanced guidance. Join Our Platform.
AP - Security Service - Min Wages.PDF
16.03.15 national legal service authority complaint 240214 NIACL CMD.docx