THE practice of businesses, especially restaurants and hotels, to impose an extra service charge has become extremely prevalent in recent years.
This service charge is justified only if the money goes directly to the front- and back-end service crew, on top of their base salary.
This serves to not only provide an additional incentive for staff to perform at their best, but it also provides employees with a greater sense of ownership in the business.
In Singapore, where tipping is not commonly practised, service charges can also serve as a way for the Government to systematically develop and provide larger recognition for our workers in the service sector.
This would eliminate the question of the legitimacy of such charges.
Chua Kok Nam
