Govt sticks to decision on Hotel industry

The Centre has ruled out reconsidering its decision to include the Hotel Industry under the Factories Act, dealing a blow to demands by industries that they by exempted from the purview of the legislation.

A delegation representing reputed hotels recently met the Labour Secretary to demand Hotel Industries to be continued to be covered under the 'Shops and Establishment Act'.

Hotels will have to change many rules once the industry is included under the Act. Rules like fixed shifts of eight hours would have to be in place and employers would have to pay extra for overtime.

Hotels would also have to ensure health, safety and welfare facilities, employment of young persons and annual Leave with wages.

"A delegation met recently in this regard but we are firm and not considering any decision again. The industry needs to discipline themselves a bit. It is about safety and security of people working in hotels. And that number is huge and we are responsible for them," said a highly placed official in the Ministry.

The Factories Act is a social legislation which has been enacted for occupational safety, health and welfare of workers.

Defaulters can face a maximum punishment of two years' jail sentence or a fine of up to Rs one lakh, or both.

The Hotel industry maintains that there is no need to include it under the purview of the Act as high standards are already being maintained.

"We are following all rules and regulations and ensure that our employees are well looked after covering all aspects. Inclusion of hotel industries under the factories act is something that is not necessary," said Sanjay Bose, Head of Human Resources at Taj Hotel.