CONSIDER USING TERM ‘STAFF WELFARE FUND’ INSTEAD OF SERVICE CHARGE: DELHI HIGH COURT TO HOTEL AND RESTAURANTS ASSOCIATION. The Delhi High Court on 13th April 2023 asked restaurant and hotel associations to consider changing the term ‘service charge’ to ‘staff welfare fund’ or ‘staff welfare contribution’ to avoid the confusion that is a government-imposed levy. As it creates confusion in the mind of people that the service charge is compulsory to pay in the restaurants and it is a government-imposed levy. So, to clear the confusion among consumers, the court has asked the restaurants to consider that the service charge at the restaurants they pay is for the contribution towards the welfare of the staff. With a team of Commercial Law experts, Reddy & Reddy Law Firm has extensive experience and involvement in commercial disputes, including Insolvency Proceedings. We are regularly involved in representations before NCLT, NCLAT, DRT and other commercial tribunals in India.
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