Is a Company Guest House covered under Shops and Establishment Act - CiteHR
Umakanthan53
Labour Law & Hr Consultant
Kunal_560
General Manager-hr

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If a company has a Guest House located near the factory, do we need to register it under Shops & Establishment? However, is not into selling of food or service. It caters to employees who are travelling from other places, for some work in the factory. However, the stay and food are free of cost.
Dear Kunal,
If the guest house is situated within the premises or precincts of the area of the factory, it would be the part of the factory establishment. If it is situated elsewhere, since it is open to a special type of people viz., the employees and guests only and not to the general public, it would not be covered by any establishment-specific legislation like the S&E Act.

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