Dispute existing between hotel and restaurant proprietors and workers over the issue of distribution of service charge for the past one-and-half-year ago came to an end today after signing 19-point agreement.
As per the agreement, out of total service charge charged from customers, 72 per cent would be provided to workers.
An arrangement had been made to provide service charge to workers at hotels and restaurants since 2006 December.
In the beginning, out of the total service charge, workers used to get 70 per cent and 26 per cent by hotel proprietors. The dispute took place after workers demanded increment in the percentage of service charge providing by the hotels.
As per the new agreement, hotels and restaurants can keep 23 per cent of service charge for repair and maintenance as well as capacity building. Similarly, Hotel Association and Restaurant and Bar Association of Nepal would get two per cent of service charge and workers unions related to hotels and restaurants, that signed the agreement, would get one per cent of service charge each.
Likewise, five per cent amount of the total salary would be increased annually now onward.