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
From India, Mumbai
Dear member,
1. You have raised an important legal issue on which there is Hon'ble Supreme Court judgment of year 2007 in Quality Inn Southern Star's case. The copy of said judgment is attached herewith for your information.
2. However, I am not sure whether the above judgment is applicable still today or whether or not it has not been over-ruled ?. Therefore, I will suggest you to please take up the matter with the appropriate Regional/Sub/Divisional Office of ESIC where your unit is covered and seek their approval or opinion by indicating that as per their circulars and Hon'ble Court decision also no contribution on such "service charges" as collected from customers and paid later on to the staff is payable under ESI Act, 1948.
From India, Noida
9211. You have raised an important legal issue on which there is Hon'ble Supreme Court judgment of year 2007 in Quality Inn Southern Star's case. The copy of said judgment is attached herewith for your information.
2. However, I am not sure whether the above judgment is applicable still today or whether or not it has not been over-ruled ?. Therefore, I will suggest you to please take up the matter with the appropriate Regional/Sub/Divisional Office of ESIC where your unit is covered and seek their approval or opinion by indicating that as per their circulars and Hon'ble Court decision also no contribution on such "service charges" as collected from customers and paid later on to the staff is payable under ESI Act, 1948.
From India, Noida
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AP - Security Service - Min Wages.PDF