UAE | General

Service charge on UAE restaurant bills leaves a bad taste in the mouth

However, some restaurants have stopped levying the charge after media reports quoted the Ministry of Economy as stating that it is illegal to impose service charges.

By Anjana Sankar, Senior Reporter, Gulf News
Published: 00:00 December 29, 2009

Image Credit: Arshad Ali/Gulf News
Fines could range from Dh5,000 to Dh100,000 and the authorities could even order closure of the outlet if there are repeated offences.

Dubai: Restaurants dishing out service charges to their customers are aware that it is illegal to inflate food bills in this manner but insist they will stick with the practice until there is an official notification.

However, some restaurants have stopped levying the charge after media reports quoted the Ministry of Economy as stating that it is illegal to impose service charges.

When Gulf News visited the Japengo Café in Jumeirah on Monday and refused to pay service charge, the restaurant management insisted on the additional payment, maintaining that they had not received any directive from the authorities in this regard.

"It is illegal but we do not follow newspaper stories. We have instructions from our management to continue taking service charges until we get a memo," said the employee.

Complaints

The management at Fuddruckers, too, said they would continue with their 12 per cent service charge and asked customers with complaints to approach the authorities.

Comments (25)

Added 14:09 December 29, 2009

I don't think the "service charge" levied to customers are being given to restaurant employees on top of their salaries. If so, those employees would be very happy every end of the month as they may be receiving so much money on top of their salaries. Ask any restaurant employees how much they are getting every month end and you will know.

Reg Cucal, Abu Dhabi, United Arab Emirates

Added 13:59 December 29, 2009

Last night a group of us went out for dinner in a shopping mall, our bill was slapped with a 15% service charge - we all decided not to pay it due to the above type articles realeased . Waiters came running after us and asked us to return to the restuarant; when returning we had to explain to the person incharge (since the manager wasn't even there) that what they were doing was illegal. They pointed out that they even have it printed on the menu that a service charge will be charged. When we asked to see the municipality authorisation that they told us about, the refused to show it. After showing the articles from Gulf News on our mobiles, the resturant let us go without paying the service. It was amazing how rude they were to us after we paid the bill. Are we going to have fight from now on with resturants everytime we finsh a meal? Is this law going to be put into affect ?

Danny B., Dubai , United Arab Emirates

Added 13:40 December 29, 2009

Ever since we've been in the UAE, we've always paid for service charges - unwillingly of course - but thought that it was part of the system. I don't understand how this could have passed under the radar for three years since the policy came out in 2006 and we are only now scrutinising restaurants about service charges. This is such a shame. Are policies not adhered to or monitored? From now on, we will not be paying for service charges.

Nat LD, Dubai, United Arab Emirates

Added 12:37 December 29, 2009

Why are we supposed to argue with the restaurant management? If something is against the law, and is marked ILLEGAL, the government should look into it. Government should notice issues and a deadline for restaurants to delete this service charge from their bills.

Sahar Ali, Dubai, United Arab Emirates

Added 12:33 December 29, 2009

It's almost customary for restaurants to levy service charges against the food bill which for me is ok as I know it goes to the waiting staff and cooks at the end of the day. But if this practice is illegal in this country then this should be implemented. However, I hope that the ministry also protects the rights of the restaurant staffs whom are being paid meager wages compared to their workload and number of hours they serve.

Anonymous, Dubai, United Arab Emirates

Added 12:30 December 29, 2009

Some restaurants charge 10% service charge even if you are getting a takeaway! Why do you have to pay service if you are collecting at the counter and taking it home?!

Rob Greene, Dubai, United Arab Emirates

Added 12:12 December 29, 2009

We ate at a pizza outlet in sharjah corniche. They have charged me AED 9 as a service charge. Bill for the food is AED 75 & service charge is AED 9. So i have paid the bill for AED 84.

Basker, Sharjah, United Arab Emirates

Added 11:55 December 29, 2009

I guess its a good idea if details can be provided like a Hotline number whom to contact if a resturant force you to pay the service charges. They should be caught Red handed..

Anonymous, Dubai, Germany

Added 11:52 December 29, 2009

Almost all the restaurants I visited here in Dubai impose at least 10% service charge. I have no idea that this is illegal and I always pay these charges. If I see service charges on the bill, I do not tip, thinking service charges go to the waiters and staff. But if this is really illegal, and the law was passed since 2006, then the Ministry of Economy should send out memos to all restaurants asap.

Marby De Guzman, Dubai, United Arab Emirates

Added 11:49 December 29, 2009

A few weeks ago, I paid a 16.5% service fee at one of the restaurants. I deducted this from my typical 20% tip which didn't go over well with the waiter. If the Ministry of Economy has deemed this practice illegal, it should be effective immediately. "Waiting for a memo" is just an excuse that allows restaurants to continue the illegal practice.

Anonymous, Abu Dhabi, United Arab Emirates