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<b>Letters</b>: Tipping: Bane or boon?

Whether tips reduce the profitability of a unit may be argued

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Business Standard
Last Updated : Jan 03 2017 | 10:52 PM IST
The Supreme Court has clarified on the concept of service charges in restaurants. Service charges and tips do not go together. Therefore, it was expected that levy of service charges would lead to abolition of tips.

As observed by a journal on the industry: “Tipping at best is an inglorious free for all and at worst, an excuse for low wages. We consider tipping a curse and almost a sort of bribery. It is the cause of much nuisance to the management and, in many cases, to the customer.” Receiving tips is undignified and the system is being abused. 

Whether tips reduce the profitability of a unit may be argued. It has even been alleged that the way in which the system is being practised in India scares some foreign tourists away or, at least, causes them annoyance. If the payment of tips had remained voluntary in form and spirit — as “reward” for personalised and efficient service — perhaps, not much would have been said against the system, although it would still be unfair to the employees working behind the scene. 

Despite the levy of service charges, tipping has not stopped. Hence, the discarding of compulsory service is in the right direction.

H L Kumar  New Delhi

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