Industry · Hospitality
Compliance for hotels and restaurants
Hotels and restaurants staff up for the season, run several outlets and often hand housekeeping or security to contractors. We keep each outlet registered and every worker on the right terms: permanent, seasonal or supplied by a contractor.
- Shops & Establishments for each outlet
- Seasonal and fixed-term staff
- Contract housekeeping and security
- Fire NOC and trade licence
Who is on the floor
Three kinds of staff, three sets of rules
A busy service day can put permanent staff, seasonal hires and a contractor's team on the same floor. The law treats each one differently, so each needs its own paperwork.
Seasonal work that runs for more than 60 days in a year is not 'intermittent' under the OSH Code, so the contract labour provisions still apply to it.
What applies
Outlet by outlet, employee by employee
Some duties attach to each outlet or building, some to every employee and some to each contractor. A hotel, restaurant or eating place is not a factory under the OSH Code, so its kitchen needs no factory licence.
- Each outlet
Shops & Establishments
State Shops and Establishments Act
Restaurants, cafés and hotels are commercial establishments under the state's Act, depending on its definitions. Each outlet is assessed against its state's thresholds.
- Each outlet
Trade licence
Municipal rules
Renewed within the municipal or state window, against the existing licence, tax receipts and occupancy certificate. A missed window invites notices and penalties.
- Each kitchen
Food safety
Food safety law
An FSSAI licence or registration, depending on turnover. Food safety records are kept ready for inspection.
- Each building
Fire NOC and lift licence
Fire and lift rules
A Fire NOC from the fire department after it inspects the premises, and a lift licence with periodic inspections where there are lifts.
- Every employee
Appointment letters
OSH Code, 2020
Required for every employee, seasonal or permanent, setting out the job, the wages and social security.
- Every employee
Hours, rest and overtime
OSH Code, 2020
Eight hours a day and six days a week at most. Overtime needs consent and is paid at twice the rate of wages, worked out daily or weekly, whichever favours the worker.
- Every employee
PF, ESI, PT and LWF
Code on Social Security, 2020 and state laws
Contributions by the 15th of the following month. Professional Tax and Labour Welfare Fund follow the state each outlet is in.
- Each contractor
Contract labour
OSH Code (formerly CLRA)
Applies from 20 contract workers. If a contractor pays late or short, or defaults on EPF and ESIC, the liability comes back to you.
Services that apply
The services a hotel or restaurant uses
Each card opens the service page with the full scope and the questions employers ask.
Licences & registrations
Shops & Establishments and trade licences for each outlet, renewed on time.
Contract staffing
Seasonal and fixed-term associates engaged on written terms, with PF, ESIC, TDS and PT.
Contractor & vendor compliance
Housekeeping and security contractors checked for wages, PF and ESI.
Labour law compliance
Registers, returns and notices for each outlet, and inspection support.
Payroll services
Payroll with overtime, PF, ESI, PT, LWF, bonus and gratuity worked out.
EHS compliance
Fire NOC, lift licence and food safety records for each building.
Outlet by outlet
Each outlet's file, kept current
Your relationship manager keeps the registrations, registers and staff records for every outlet, in every state you run one.
- Establishments and factories covered
- 250+
- Employees under our compliance management
- 3,500+
- Challans and returns filed every month
- 300+
- Client retention
- 85%
Every client has a dedicated relationship manager, and we reply within two working hours.
Common risks
Where hotels and restaurants usually slip
Most of these start in the busy season, when headcount moves fastest.
Risk 01
Seasonal hires with nothing in writing
The OSH Code requires an appointment letter for every employee, however short the engagement.
Every associate we engage receives a tested employment contract and deputation terms.
Contract staffingRisk 02
A new outlet opened, never registered
Many states expect registration, or an intimation, within about 30 days of starting business.
We check the state's thresholds, then register the outlet or file its intimation.
Licences & registrationsRisk 03
Contractors' wages unchecked
If a housekeeping or security contractor pays late or short, you pay the workers the balance and recover it from the contractor.
We check minimum wages and timely payment for each contractor.
Contractor & vendor complianceRisk 04
Overtime paid at the normal rate
Overtime is paid at twice the rate of wages, worked out daily or weekly, whichever favours the worker, and it needs the worker's consent.
Overtime is worked out with the payroll, along with every statutory line.
Payroll servicesRisk 05
Fixed-term gratuity overlooked
A fixed-term employee who completes one year of service is eligible for gratuity, without the five-year minimum that applies to others.
Gratuity for fixed-term associates is part of our salary administration.
Contract staffingRisk 06
A renewal window missed
Trade licences, Fire NOCs and lift licences each have their own renewal cycle. A missed trade licence window invites notices and penalties.
We track each renewal date and file before expiry.
EHS compliance
FAQ
Questions about hospitality compliance
Can't find your answer? Ask us on WhatsApp and we'll reply within 2 working hours.
Does a restaurant or hotel need a Shops and Establishments registration?
In nearly all states, yes. Restaurants, cafés and hotels are commercial establishments under the state's Shops and Commercial Establishments Act, depending on its definitions. Depending on the state's thresholds, each outlet registers or sends an intimation, often within about 30 days of opening.
Is a hotel kitchen a factory?
No. The OSH Code's definition of a factory excludes a hotel, restaurant or eating place, so no factory licence is needed for the kitchen. The kitchen still needs its FSSAI licence or registration, and the building its fire safety approvals.
Do seasonal staff need PF and ESI?Needs client review
PF and ESI coverage turns on wages and the establishment, not on how long the engagement lasts.Needs client review Under our contract staffing service, we register associates under PF and ESIC and remit PF, ESIC, TDS and Professional Tax on time.
Can we use contract staff for housekeeping and security?
The OSH Code prohibits contract labour in core activities, with exceptions. It does not treat security, sanitation, or housekeeping and laundry as core where an establishment is not set up for them. Housekeeping is non-core only where it is a support service, so a hotel should check the position before contracting it out. If there is a dispute, the appropriate Government decides.
Do the contract labour rules apply to a seasonal business?
Yes, unless the work is only intermittent or casual. Under the OSH Code, seasonal work that runs for more than 60 days in a year is not intermittent. The contract labour provisions apply from 20 contract workers.
Can women staff work late shifts?
Under the OSH Code, women may work before 6 a.m. and after 7 p.m. with their consent, on conditions the government prescribes on safety, holidays and working hours. The employer arranges safety, facilities and transport. States are still notifying their rules, so we check the conditions in yours.
What does it cost?
It depends on the number of outlets, the states they are in, your headcount and how many contractors you use. Send us an enquiry with those details and we will come back with a quote.
Enquiry
Talk to a compliance expert
Share your states and headcount, and we will get back to you within 2 working hours.
- Call+91 98457 40938
- WhatsApp+91 98457 40938
- Emailinfo@nkonehrsolutions.com
- Head office, Bengaluru1163, 9th Main, 11th A Cross, Nagapura, Mahalakshmipuram, near Rajajinagar Metro Station, Rajajinagar 1st Block, Bengaluru, Karnataka 560086
