Curious About Canteen Food Policies in Manufacturing Units? Let's Discuss Price Limits and Management Decisions

Hi, Good Morning, My name is Rakesh Reddy, and I work in an MNC. I am interested in knowing if there is a food policy in manufacturing units. In our organization, we are considering establishing a canteen facility for employees. I would like to inquire if there is a price limit for food for working employees. If so, please provide me with the price list. Alternatively, is it dependent on management decisions?

Thank you.

The Factories Act only states that the employer must provide a canteen facility. It does not specify that the food must be free or subsidized. Therefore, the management is free to establish its own policy on pricing and the type of food offered. The only restriction is that the canteen cannot generate profit, though incurring a loss is allowed. This means the company itself cannot make a profit, but there is no prohibition on a canteen contractor making a profit.

Impact on Industrial Relations
However, the cost of the canteen often has an impact on industrial relations and your ability to attract workers. Therefore, I recommend checking what other factories nearby are doing and then making your decision accordingly.