From Monday the 6th of April 2015, restaurants and hotels are no longer allowed to impose 10% service charge unless they have employer-employee collective agreements in order.
According to the Domestic Trade and Consumerism secretary-general, Datuk Seri Alias Ahmad, this new rule is temporary at the moment, until the Government figures out a way to regulate the collection of service charges. He also added that currently there are no official body or ruling that basically regulates the collection of service charge and since the Ministry of Domestic Trade and Consumerism have been receiving lots of complaints regarding this issue, they have came to this decision.
On top of that, Datuk Seri Alias Ahmad also urges businesses to install clear displays if service charges are being imposed. And for businesses that do not have a collective agreement on service charges but still continue to impose it, then action will be taken under the Anti-Profiteering Act.