SC nullifies services charges in hotels, restaurants

By TRN Online, Kathmandu, Jan 26: The Supreme Court has nullified the service charged being levied by hotels, restaurants and other service providers on the client, thereby invalidating the related provision in Labour Act, saying the provision is not in line with the constitution.

A constitutional bench comprised of acting Chief Justice Hari Krishna Karki, justices Bishwambhar Prasad Shrestha, Ishwar Prasad Katiwada, Dr. Ananda Mohan Bhattarai and Anil Kumar Sinha issued a mandamus against the service charge terming it illegal and ordering the service providers such as hotels, restaurants, travel agencies and others.

The SC decision has rendered null and void the section 87 (3) of Labour Act 2017 and the Rule 82 of Labour Rules 2018 arguing these provisions contravene with Article 133 (1) of the constitution.