HRMS software for hotels and restaurants

Which law governs working hours in a hotel?

Hours, spread-over, weekly holidays and leave in a hotel come from the state Shops and Establishments Act, which the Labour Codes did not repeal, and from the OSH Code, which covers establishments with ten or more workers. A hotel or restaurant is not a factory under section 2(w) of the OSH Code, so the factory-specific provisions do not apply. Overtime is paid at not less than twice the normal rate of wages under the Code on Wages.

That makes hospitality compliance state-specific in a way that many chains underestimate. A group with properties in Goa, Rajasthan and Kerala works under three different state Acts. Engage holds shifts, weekly offs, holiday lists and leave policies by property, so each one follows its own state's rules. The Shops and Establishments glossary entry has more.

Can a hotel use contract staff for housekeeping or the kitchen?

Only within limits, and the answer can differ between housekeeping and the kitchen. Section 57 of the OSH Code bars contract labour in an establishment's core activities. Housekeeping and laundry, and canteen and catering, are on the list of activities excluded from core activity, but only where the establishment is not set up for them. A software company's canteen is a support service. A restaurant's kitchen is the business, and a hotel's housekeeping is a large part of what a guest pays for.

That does not rule out contractors, because section 57 has three exceptions, including work ordinarily done through contractors in that type of establishment and sudden increases in volume. It does mean the question has to be asked for each function rather than assumed. The contract labour provisions apply at fifty or more contract workers across all contractors, and the principal employer owes welfare facilities and unpaid wages either way. The contract labour glossary entry explains the test.

How should comp off and holiday work be handled?

Comp off is a substitute for a rest day or holiday, not a reward, and where an employee works on a weekly rest day the substitution rules apply, including limits on consecutive days worked. Working on a national or festival holiday attracts compensation whose basis comes from statute rather than policy. An unexpiring comp off balance is a liability that becomes a claim when the employee leaves.

Engage shows holiday and weekly-off work in the attendance record, lets managers grant comp off against it, and shows outstanding balances by employee and outlet. At exit, full and final settlement picks up what is owed. The compensatory off glossary entry covers the rules.

How should seasonal hotel staff be employed?

On fixed-term contracts, which the Labour Codes recognise with benefits on a proportionate basis. That suits hill stations, beach properties and pilgrimage towns that hire for the season. Fixed-term employees earn gratuity pro rata without the five-year qualifying period. For an employee in a seasonal establishment who is not employed throughout the year, the Code on Social Security sets gratuity at seven days' wages for each season.

Engage handles the season end to end: recruitment and onboarding before it, fixed-term contracts with an end date during it, and full and final settlement when it closes. Dues on exit are payable within two working days under the Code on Wages.

Why does hospitality attrition hurt so much?

Guest experience depends on people who know the property, and hospitality loses them faster than almost any other sector. Each exit costs a recruitment cycle, an induction and weeks of slower service. Track attrition by outlet and department, and look first at the rosters in the outlets that lose the most people. Engage's learning module lets you run standard operating procedure and service training as short courses on the phone, so new joiners reach standard faster.