Govt plans to bring Hoteliers under Factories Act
If govt has its way, hotels will neither be able to retrench employees nor shut units without the approval of authorities.
By Rajat Guha & Rajeev Jayaswal, TNN |
NEW DELHI: Hoteliers could find themselves in the grip of rigid labour laws. If the government has its way, hotels will neither be able to retrench employees nor shut units without the approval of authorities.
The government is considering bringing hotels into the ambit of the Factories Act, 1948.
“The labour ministry has proposed bringing hotels into the ambit of the Factories Act through an amendment. The move has been broadly approved by other ministries and state governments. The ministry is in the process of finalising the draft to be tabled before the Cabinet,” an official source said.
While defining `factory’ , Section 2(m) of the Factories Act specifically excludes railway sheds, hotels, restaurants or eating places from the definition of a factory. Hotels are currently regulated through the Shops & Establishment Act.
The labour ministry is of the view that the legislation has failed to check ‘irregularities’ by these establishments; hence there is a need to bring hotels under the jurisdiction of the Factories Act.
Most labour disputes and legal proceedings in case of hotels pertain to non-payment of wages, arrears, overtime, leave-wages, non-maintenance of records and non-observance of working hours, a ministry source said.
The government is considering bringing hotels into the ambit of the Factories Act, 1948.
“The labour ministry has proposed bringing hotels into the ambit of the Factories Act through an amendment. The move has been broadly approved by other ministries and state governments. The ministry is in the process of finalising the draft to be tabled before the Cabinet,” an official source said.
While defining `factory’ , Section 2(m) of the Factories Act specifically excludes railway sheds, hotels, restaurants or eating places from the definition of a factory. Hotels are currently regulated through the Shops & Establishment Act.
The labour ministry is of the view that the legislation has failed to check ‘irregularities’ by these establishments; hence there is a need to bring hotels under the jurisdiction of the Factories Act.
Most labour disputes and legal proceedings in case of hotels pertain to non-payment of wages, arrears, overtime, leave-wages, non-maintenance of records and non-observance of working hours, a ministry source said.
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