If a small restaurant is employing 3 to 5 persons only, what are the legal compliance to be followed by them in respect of employment like payment of minimum wages etc??
From India, Kolkata
Labour Law & Hr Consultant
Korgaonkar K A
Hr / Ir


No idea about any special law relating to regulation of service conditions in catering establishments like restaurants or eateries in force in your State. If no such an exclusive law in force, automatically the State Shops and Establishments Act would be applicable to your restaurant. It follows then,
(1) the wages to the employees in the restaurant should be paid at not less than the minimum rates of wages fixed by the State Govt under the Minimum Wages Act,1948 for the various employments in Shops and Establishments.
(2) the various registers to be periodically maintained in respect of the employees and the notices to be kept exhibited in the establishment under the State Minimum Wages Rules have to be kept up to date in the establishment for the purpose of inspection by the inspectors under the Act. For further details in this regard you may refer to the State Minimum Wages Rules.
(3) to know the exemptions,if any granted by the State Govt from maintaining certain registers, forms etc., of the same or similar nature under any other law applicable to avoid duplicity, you may better contact your area inspector under the Act.

From India, Salem
korgaonkar k a

Dear Friend,
I just add some points to Umakanthan Sir.
To my knowledge there is no special law relating to regulation of service conditions in catering establishments like restaurants or eateries except:
1. Medical check up periodically as per local body requirement.
2. Restaurants or Eateries is a schedule industry under Minimum Wage Act in many States as per my knowledge. If it is so, the minimum wage rates are applicable as per Restaurants or Eateries.
3. Persons employed in Restaurants or Eateries stay in the premises of Restaurants or Eateries overnight generally. They get food to eat. In Maharashtra, in MW Act there is a provision in respective schedule industry allowing certain deduction towards food facility. Other States, I am not aware.
4. Deduction towards PTax as applicable.
5. Labour Welfare Fund of the State as applicable.

From India, Mumbai

Dear Friend , Addition to this In Maharashtra all Canteen are suppose to take licences from FDA under PFA ,& kitchen has to be in specific hygienic Conditions as applicable . Regards , Y.R.Shirke
From India, Mumbai
korgaonkar k a

Dear Y.R.Shirke ji,
I did not mention this since the query is in respect to employment law like payment of minimum wages etc.
To run Restaurants or Eateries, one has to obtain licence from local authority. On various parameter, the licence is granted in different grades such as A / B / C.
Additionally one has to comply the provisions of FSSAI including obtaining licence under this Act. Earlier there were two licences from FDA - one from local authority another from FDA dept. But after the implementation of FSSAI both the departments are merged together under Central Goverment.
Additionally, there are many permissions & NOCs required such as fire, industrial gas cylinder etc.

From India, Mumbai

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