Guide on collection and distribution of service charge

This guide explains the rules regarding the collection, distribution and reporting of Service Charge as required by the Sixth Amendment to the Employment Act. The collection, distribution and reporting requirements of Service Charge were subsequently detailed in the Regulation on Collection of Service Charge issued by the Labour Relations Authority on 16 March 2021.

The guide will also provide you with clarification on some of the critical matters in relation to calculation of Service Charge and provide you with examples of application that will help simplify the rules.