Legal loopholes in the labour law and improving clarity on the issue may allow Maharashtra’s hospitality industry to stay open on October 13, the state’s election date for its Legislative Assembly.
The state’s hotels, restaurants, malls and multiplexes have been in a tizzy since Tuesday this week, when the Times of India reported that the Maharashtra government was compulsorily shutting down commercial establishments in an attempt boost voter turnout.
What the circular from the Maharashtra Industries, Energy and Labour Department dated October 1 does say is that an employee of a commercial establishment in Maharashtra – residential hotels, restaurants and theatres are specifically mentioned – must be given a paid holiday if that employee is entitled to vote in the state election on the day of the poll (October 13). Non-eligible employees are permitted to work.
The loophole the hospitality industry may exploit is the related rider in Section 135 (B) of the Representation of People Act (1951) which the Labour department is quoting. Part 4 of Section 135 (B) states that the circular does not apply to those whose absence from duty ‘may cause substantial loss in respect of employment’. This is one of the most likely options the hospitality industry may exercise.
Apart for this, going by Section 135 (B) of the Representation of People Act (1951) which the circular quoted, the penalty for non-compliance is a fine of Rs500 and not arrest as reported by the Times of India.
The state’s apex hospitality association, the HRAWI, is however not taking chances and is continuing its effort to get complete clarity. “The circular contradicts itself, but we are still pushing for clarity,” said MA Sarela, manager, admin and liason, HRAWI.
Click on the image button for a copy of the circular (Available two parts).
