Service charge, does it go to the right people?

rt160177 · Post by **rt160177** » Thu, 13 Sep 2007 1:47 pm

Does the service charge actually end up in the pocket of the waiter/waitress, taxi driver etc? Just curious to know as i would tip a lot more if it didn't.

RT

hagar · Post by **hagar** » Thu, 13 Sep 2007 1:55 pm

Generally not - it is either shared or partially shared with the balance retained by the owner. Sharing is normal as service and quality is not only the specific waiter but also the people in the kitchen, setting tables, buying food etc.

When the service is very good I will tip also leave a tip - this will also normally go into the tip jar or box. There has also been a few times when the service has been so bad that I have not paid the sevice charge explaining to the manager that it was not warranted.

Cheers.

rt160177 · Post by **rt160177** » Thu, 13 Sep 2007 2:26 pm

I suspected that many owners would keep a large amount of the service charge and that is why I tip for good service. I agree that it is a good thing that the service charge and tip's be shared among the staff but I don't believe the owner should receive any.

Didn't know you are entitled to with hold the service charge, luckily I have had no call to do that yet.

RT

cutiebutie · Post by **cutiebutie** » Thu, 13 Sep 2007 2:41 pm

I work in one of the top hotels and know the tips do go to the staff here, but I do not know about other places. management here is very strict about this.

hagar · Post by **hagar** » Thu, 13 Sep 2007 2:50 pm

Unfortunatly owners will argue that the service charge is taxable income and they have to pay tax on it so will hold back some. Dispursements of these invoiced service charges also need to be documented and become part of the taxable income of the employees. I would also not be surprised if they also hold some back as also being entitled to part of the service charge if they are hands on. My understanding is that a lot of the time it is simply retained as an offset to wages paid.

I have deducted the service charge only two times with explanation - both times it was not a great issue. I have been told that the service charge can be refused but am not entirely sure on the legal position.

Cheers

sprite · Post by **sprite** » Thu, 13 Sep 2007 3:25 pm

No, it does not. It goes toward their uniforms or other nonsense. It is not a tip and this is one reason why service is so bad in Singapore. Waitstaff is generally working for $5/hour

rt160177 · Post by **rt160177** » Thu, 13 Sep 2007 3:40 pm

cutiebutie wrote:I work in one of the top hotels and know the tips do go to the staff here, but I do not know about other places. management here is very strict about this.

Do you see any of the service charge as well?

cutiebutie · Post by **cutiebutie** » Thu, 13 Sep 2007 4:34 pm

The service charge is also passed on, it has to be as it is like a tip.

Arizona · Post by **Arizona** » Mon, 24 Sep 2007 1:02 am

So, who actually stole the cookie from the cookie jar?

One of life's mysteries.

huggybear · Post by **huggybear** » Mon, 24 Sep 2007 8:07 am

cutiebutie wrote:I work in one of the top hotels and know the tips do go to the staff here, but I do not know about other places. management here is very strict about this.

you work at a top hotel with excellent service ....

i don't think that's the same as working at the cedele in GWC or Crystal Jade Paragon or Din Tai Fung ....

more importantly so what locations can we use your hotel discount?

cutiebutie · Post by **cutiebutie** » Sat, 29 Sep 2007 10:05 am

huggybear wrote:
cutiebutie wrote:I work in one of the top hotels and know the tips do go to the staff here, but I do not know about other places. management here is very strict about this.
you work at a top hotel with excellent service ....

i don't think that's the same as working at the cedele in GWC or Crystal Jade Paragon or Din Tai Fung ....

more importantly so what locations can we use your hotel discount?

I think you will find that nothing is equal when you look at an entire industry.

(Many locations

)

phil30k · Post by **phil30k** » Mon, 14 Jan 2008 4:45 pm

Service Charge:

The business charges it, the customer pays it, the business keeps it. Any variation is not the norm.

When I was 18 I worked in a restaurant as a waiter. The first time I got a tip I gave it back then I had to go ask the manager what was going on.

Somehow I got the impression the guy (with his wife sitting right there) was inviting me to go back with them for unmentionables. Yep, they were expats.

That memory makes me laugh.

And don't ask me to explain why I thought that..

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Service charge, does it go to the right people?

Service charge, does it go to the right people?

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