No Service charges at Hotels, Bars and Restaurants for those without CA

This topic is hitting the roof after KPDNKK announced that all Hotels, Bars and Restaurants without a collective agreement in place must stop the practice of service charges. However, please bear in mind that this has been announced as a temporary measure pending further implementation on laws to regulate service charges.

Phone calls to KPDNKK have resulted in some uncertainty for Hotels, Bars and Restaurants around but purely as a matter of suggestion, the following may be applied until we hear further:

  • For those with a collective agreement, a display must be up immediately notifying consumers that service charges applies at your Hotel, Bar or Restaurant;
  • For those without a collective agreement, start putting together a flawless set of documents to substantiate that service charge is channeled to employees via a service point system. This will make your Hotel, Bar or Restaurant no different to one with a collective agreement because your basis of service charge is substantiated and regulated similarly to how it is under a collective agreement; (and of course put the notice up too)
  • Have on standby a spreadsheet containing consequences to payroll and the economical well-being of the Company should this be passed bearing in mind that all employees will be without service points but are moved to the minimum wage bracket;
  • Use your employer’s organisation to suggest that this sudden announcement has huge consequences to your business;
  • If service charges are going directly into your revenue and not your employees, then you should consider adjusting the price of goods reasonably and stop the practice of service charge.