Will Hotel Come Under Factory Act Or Delhi Shop And Establishment Act? - CiteHR
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Dear Seniors,
I have recently joined a 3 star hotel in delhi as an HR Manager.
Here we are giving 15 CLs and 15 PLs to all employees.
But I believe the leaves are entitle as per law,whether the company comes under under factory act or delhi shop and establishment act.
Please guide me whether hotel would come under Factory Act or Shop and etablishment Act?
and one more doubt:Here we are giving the kitchen staff as per min wages( for unskilled worker) i.e Rs 5278.is it right?And if some one has graduated will the scale change accordingly?i mean shud we pay him Rs 7020?
Please suggest.
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To answer your first question, it is Shops and Establishment Act.. To second question: no idea.
Dear Komal,
Minimum wages are always paid on the category of work a person is doing not on the basis of his/her qualification.
Suppose a person is doing some unskilled job then he become graduate it doesnt effect the nature of his work.
so he will get as per his category .i.e. unskilled, semi skilled, skilled or highly skilled
it comes under shops and commercial establishment act. CL- 12 SL- 12 PL-12 (After one year)
Dear Komal, Hotel industry covered by two acts. The manufacturing/production area is under factories act 1948 and the serving area is under shops & establishment act. Regards, Rajendra prasad
Leaves you need to give as per the [FONT=Arial]Act. In Delhi [ as per Shopsand Establishments Act ] it should be 15 PL, one can get 12 CL annually. An employee who has completed a period of one month in continuous service shall be entitled to not less than one day's casual leave. The PL shall not be credited in advance at the beginning of the financial year. Since this is earned leave and becomes due only after working, in each financial year depending on attendance records, PL shall be credited @ 5 days for every four month cycle on 1st Aug 1st December and 1st April.
Reference to your query the leaves differs from one company to another company policy and as per the law PL will be 15days (means 1.5 days for every 20 days) and CL will be 12 days and SL will be 7days.
The company management has the flexibility to design the leave policy according to their requirements and working procedures.
1. Is it mandatorty to get registered for all the offices under Shops and Establishment Act.
2. Can you please inform me which is the office / locaton which does the registration in Delhi for Shops and Establishments Act.
Thank you,
Dear Mr. Komal,
All the hotels and restaurants are coming under Catering establishments Act. Please purchase a Catering Establishment Act Book and then finalise the leave as per the act. As for as minimum wages act the minimum wages will be calculated as per his designation. When you go through the minimum wages act for Delhi you can see the wages mentioned for various designations. From there you can choose the exact wages to be paid to kitchen staff. It is not a question of that the employee is a degree holder or not.
P. Karunakaran
Dear All,
My Name is Murali Krishna and working as HR in a Private Company. I request u pl.clarify my doubt.
We have deducted PF on the fixed Basics and submitted to PF Department. Actully, we have given 30% basic on Gross Salay (GS) and on that 12% PF is deducted. Our Components are Basic, HRA and Special Allowance. Total components amount is moe than equal to Minimum Wages and more than Minimum wages fixed by A.P.Govt. When we shown 30% basic on GS, Special Allowance is more than basic. Accordingly PF is deducting on Basic. But PF authorities are objecting that Basic is very less than special allowance. And also you are not folloiwng Minimum Wages in the basic component.
My doubt is whether Minimum Wages (MW) is Total Gross Salary or only Basic Salary. If MW is only basic salary, I have to change my basics.
Pl.clarify me
Murali Krishna

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