RUNNING a business in the hospitality industry can be challenging. As a hotelier, you’ll need to accept a range of legal risks.
These extend from consumer protection law to employment law, and, if the business is going to prosper in the long term, you’ll need to think about how you’ll cope with them. Let’s take a look at some key considerations.
Hotel Contracts and Licensing
Operating a hotel means working alongside suppliers and other kinds of partners. Forging agreements with these parties means having a good understanding of contracts and how they work. You’ll also want to think about your food and alcohol services, and the licenses you need to legally dispense these things. The hotel restaurant can be an enormously profitable part of your business, but only if it’s legally above board.
The best way to solve these problems is pre-emptively. A good hospitality lawyer will be able to draft the required documents on your behalf. They’ll have the experience necessary to anticipate problems, and get around disputes before they arise.
Employment Law in the Hospitality Industry
Like any other kind of business, a hotel owes a certain standard of treatment to its employees. You’ll need to set your wages fairly, such that they comply with the Equality Act. It’s worth bearing in mind a recent case set by shop workers, who took action against Next on the basis that they were being discriminated against. It’s generally a good idea to anticipate these problems and determine the direction that employment law might take in the future.
To ensure compliance, it’s often a good idea to seek legal counsel pre-emptively. That way, you’ll ensure that your hiring practices, training, and benefits packages are legally compliant, and that your staff will be as happy as possible.
Liability and Customer Protection
Hotels, by their nature, are exposed to a number of risks. After all, this is a building through which many unfamiliar members of the public will be travelling. You can limit the risk with the help of the right insurance. Public liability insurance, for example, might protect you against legal action taken by members of the public.
Providing your staff with the appropriate training is also essential. Everyone should know how to interact with guests and other outsiders, and regular performance reviews should be conducted to keep everyone on their toes.
Data Protection and Privacy Regulations
As a hotel, you’re going to be dealing with a sizeable quantity of sensitive data, including the personal information of your guests. Protecting this information will help you to stay on the right side of your responsibilities under the GDPR. This is another area where the right training can be vital.
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