Regulatory compliance for the hospitality industry can be referred as a set of regulations which the hotel owners are expected to customarily with. In case any of the owners of any organisation fails to comply with these regulations, it can amount to huge fines, and even to imprisonment in some cases. In this context, some examples can be provided to reflect the exact nature of the compliance regulations that is essential for the hospitality groups to follow.
The first area in this context is Fire Safety. Fire safety in the hotels is much more than simple installation of fire extinguishers as well as exit signs. The Regulatory Framework of 2005 specifies that only regular checking of the fire safety equipment is not enough. Rather, ongoing risk assessments on regular basis is also very important. Such checks are essential to make sure that the safety obligations like emergency doors are not damaged or locked. All staff of the hotel group should be fully trained for fire safety and have a detailed understanding of the escape plan of the building. In this context, fire planning of the Marriot Group of Hotels can be highlighted, who have purchased all fire retardant furniture.
The next area is hygiene. As per the Health and Safety Act 1974, of the country, the hospitality groups are supposed to maintain highest possible hygienic state. The hotel interiors should be absolutely spotlessly clean and guest washrooms as well as swimming pool and the gym should have correct hygienic standards. These would not only ensure that the hotels maintain a sound hygiene, rather the guests would have a pleasant experience of visiting the hotel also.
Other than that, based on the Electricity at Work, 1989, Gas safety, 1998 and Building Regulations, 2007, appliance testing, checking of the boilers at the hotels and lastly also undertake regular basis energy inspections.
The three types of insurance that the Australian hospitality organisations mainly require include the following:
Theft insurance:
Theft insurance could be segregated into three categories. The first one is theft that covers the loss of stocks and contents from armed hold-up, attempted theft, theft or threatened or actual assault. The second one is money, which covers damage to the money of the business from various sources like armed hold-up, theft and fire, either in transit or business premises. The final one is staff dishonesty, which covers stealing the business property by any particular staff or in combination with others. Example of the TropWorld group of Hotels in Australia can be highlighted. In this context, the theft insurance law was applied and the innkeeper dishonesty charge was brought. Finally, the management was held liable for paying back the sell price of a leather bag amounting to AUD $1310 to the lodger.
Business interruption insurance:
The incidents that are not within the control of the organisations might lead to even closure of their businesses. Therefore, this insurance policy includes operating costs like franchise and lease fees and it might cover food spoilage as well. For example if the building catches fire, this insurance can be used to cover the cost of major percentage of the products. However, the amount that is to be provided is under the decisive capacity of the insurance provider.
Equipment breakdown insurance:
In the absence of functioning equipment, it is not possible for any hospitality organisation to trade, which might hamper the overall business operations. Therefore, this insurance covers the financial cost of replacing or repairing broken fixed equipment like cool room compressor, refrigerators and others. In this context, the example of the CHUBB insurance group can be highlighted. They give the small hospitality groups insurance cover for
The superannuation guarantee legislation covers all staffs regardless of whether they work as full-time, part-time or casual staffs. This implies that as an employer, certain steps are needed during the process of employment for fulfilling the obligations. In order to meet the legal obligations, the employers and business owners need to follow all the below-discussed steps:
|
Type of Tax |
How the tax applies to the business |
Record(s) that would need to be kept. |
|
|
1 |
Fringe Benefits Tax |
This type of tax is a tax payable from the end of the employers for benefits incurred to their staffs or any of their associates like family members in place of wages or salaries. This is different from income tax and it is computed based on the taxable amounts of the provided fringe benefits. |
1. Calculation of fringe benefit tax amount 2. Registration for fringe benefit tax 3. Keeping essential records 4. Reporting fringe benefits on the payment summaries of the staffs 5. Lodging return and paying FBT amount to the ATO |
|
2 |
Goods and Services Tax (GST) |
This is a wide-based tax of 10% on all products and services applicable to all the Australian hospitality organisations. |
Records related to purchases and sales need to be kept for accurate reporting of GST liabilities and claiming GST credits. |
|
3 |
Payroll tax` |
This tax is computed based on the wages amount paid per month and collected in each state where the staffs of the organisations work. |
1. Records of allowances and wages paid to staffs 2. Payment and report copies provided to the ATO 3. Payment summary copies |
Industrial award could be defined as a legally binding document setting the minimum conditions, terms and wages for all the wage categorisations in an occupation or a sector. All awards include definitions and interpretations, coverage, employment types, allowances, minimum wage rates, overtime, breaks, superannuation, classifications and leave. On the other hand, enterprise agreement could be defined as a legally binding document setting out the employment conditions and terms between a staff or a group of staffs and an employer or a group of employers. This agreement could include different aspects related to employment like employment conditions, training, leave, remuneration and consultation. Some instances include restricting an organisation from utilising labour hire staff along with charity or social responsibility clauses. As the existing employees of an organisation are excited in sharing award-related news with others, the awards could help in building motivation within the team. With the help of enterprise agreement, the employees of an organisation could enjoy more flexible hours and rosters for fulfilling the exact operational requirements of the business.
References:
“8 Insurance Options For Hospitality Businesses”. 2018. @AAMI. https://www.aami.com.au/business-insurance/small-biz-tips/8-business-insurance-options-cafe-restaurant-takeaway-shop.html.
“Modern Awards & Enterprise Agreements”. 2018. Business.Gov.Au. https://www.business.gov.au/people/hiring/pay-and-conditions/modern-awards–enterprise-agreements.
Al Yousuf, Mariam, Eunice Taylor, and Joanne Taylor. “Developing a government strategy to meet international standards of food safety across the hospitality industry.” Worldwide Hospitality and Tourism Themes 7, no. 1 (2015): 4-16.
Cummings, James R. “Effect of fund size on the performance of Australian superannuation funds.” Accounting & Finance 56, no. 3 (2016): 695-725.
Gray, Garry C., and Susan S. Silbey. “Governing inside the organization: interpreting regulation and compliance.” American Journal of Sociology 120, no. 1 (2014): 96-145.
Kitching, John, Mark Hart, and Nick Wilson. “Burden or benefit? Regulation as a dynamic influence on small business performance.” International Small Business Journal 33, no. 2 (2015): 130-147.
Lewis, Phil, Alice Richard, and Michael Corliss. “Compliance Costs of Regulation for Small Business.” Journal of Business Systems, Governance & Ethics 9, no. 2 (2014).
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