The labour ministry has moved a note to other ministries concerned to seek their opinion on the proposal to bring hotels under the purview of Factories Act 1948. The move would make hotels subject to strict labour laws among other things.
If the plan is implemented, hotels would not be able to lay off their employees, shut their establishments or tweak working hours. According to a note for inter-ministerial consideration, hotels would be brought into the Factories Act ambit through an amendment. After the proposal is approved by the ministries concerned, it would be brought before the Cabinet for final clearance.
At present, Section 2(m) of the Factories Act excludes railway sheds, hotels, restaurants or eating places. Hotels are now being regulated via more benign Shops & Establishment Act. While proposing the new amendment in the Act, the labour ministry has said the current legislation has failed to check irregularities by hotels and hospitality establishments. Hence, there is a need to bring hotels under the Act. Labour disputes and legal proceedings in case of hotels arise owing to non-payment of wages, arrears, overtime, leave-wages, non-maintenance of records and non-observance of working hours.
Meanwhile, hoteliers maintain that they have been following good HR practices and there is no need to bring hotels under Factories Act ambit. ?There is adequate staff. Employees are not overworked. We follow all the rules and regulations and will continue to do so,? said a senior official of the ITC hotel division.Adds Ajay Bakaya, MD of Sarovar Hotels, ?The hotel industry is facing shortage of manpower. Thus to retain employees we anyway follow best HR practices. For us, the bigger problem is to find right people and to retain them.?