It is a standard practice in the hotel industry to collect a 10% service charge from the customers in place of a tipping system, which will in turn be distributed to the eligible employees. This seemingly explains why the hotel industry employees were paid low basic salary, because they would be compensated with the income earned from service charge.
On 11 January 2021, the Yang di-Pertuan Agong declared a nationwide state of emergency that will be enforced until 1 August 2021 (“Proclamation of Emergency”). To understand the effect of such proclamation, it is necessary to take a glimpse into the foundation of the Federal Constitution (“FC”).
These FAQs focus on the impacts of two Parts of the COVID-19 Act – the ‘Inability to Perform Contractual Obligation’ and the ‘Modification made to Distress Act 1951’ – concerning leases and tenancy agreements of non-residential immovable properties.