Hospitality Business Regulatory Compliance Requirements Report

This report provides a comprehensive overview of regulatory requirements within the hospitality industry, focusing on key areas such as food safety, legal compliance, and business operations. It details the severe consequences of non-compliance with health and safety regulations, including hefty fines, license cancellation, and imprisonment, emphasizing the importance of adhering to the Food Act's safety regulations. The report outlines when legal advice is crucial, such as when formulating business terms and conditions or addressing health and safety violations. It identifies essential business licenses like ABN and GST, and explains how to maintain compliance. Furthermore, the report discusses contractor compliance documents, methods for monitoring business compliance systems, and the importance of employee training. It also covers essential insurances like professional liability and employee compensation, and highlights vital compliance records, including accounting, legal, and insurance documents. The report explains the six fundamental principles of a legally binding contract, and delves into specific acts such as the Work Health and Safety Act 2011, EEO/Harassment/Anti-Discrimination, PAYG withholding, Food Act 2006, Fair Work Act 2009, and Consumer Protection/ACL, detailing their objectives, compliance requirements, and consequences of non-compliance. The report underscores the importance of proactive measures, such as building a sound corporate compliance culture and continuous monitoring, to avoid violations and maintain a safe and legally compliant business environment.

Research And Comply With Regulatory Requirements
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RESEARCH AND COMPLY WITH REGULATORY REQUIREMENTS
2.
In food and restaurant business, any violation of health and safety regulation is a serious
criminal offence. If the manager or the business organization is found to be associated with
the violation and breaching of health and safety regulation can face severe action by the
Health Safety Environment Australia department. The action can be a weighty fine,
cancellation of the licence of the business or even imprisonment. Any food business in
Australia should obey and fulfil the Food Act’s safety regulations. The HSE will first issue a
warning and assist the manager or owner about the Food Act’s safety regulations. Repetition
in the violation will lead to cancellation of the licence, hefty fine and imprisonment.
3.
I. Legal adviser should be contacted when formulating the T&C of the business, privacy
policy, employee agreements, trademark and vendor agreements, i.e in the start of the
business.
II. If a proprietor or manager identifies any violation of health and safety regulation, he
should seek advice from a legal advisor to avoid any legal or civil action by the HSE.
4. a.
The three examples of business and or occupational licenses required for businesses in the
hospitality industry are
i. An Australian Business Number (ABN)
ii. The Goods and Services Tax (GST)
iii. A tax file number (TFN)
4.b.
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RESEARCH AND COMPLY WITH REGULATORY REQUIREMENTS
To maintain business and occupational licenses, so they remain complaint, the manager or the
proprietor should seek help from a legal advisor and formulate the required business and or
occupational licenses required for running the business and then keeping regular updates
about the renewal requirements of the licenses and change in law and regulations due to
increase in revenue taxes, public safety rules, promotions of industries by government and
control over certain activities to avoid risks and hazards.
4.c.
The contractor compliance documents that are needed to check and keep on the file to avoid
risk in the business are:
 The contractor’s needs to submit the licences, authorization letters and certificates as
required by OSH Act 1984 and OSH Regulations 1996(Canciani, 2019).
5.a.
The four ways to monitor and continually evaluate the business compliance system are:
i. The business should formulate an effective business compliance management system
and tacking activities to keep up with the best practices.
ii. Information about the compliance activities in the business should be collected on a
regular basis and combine the information in strategic business compliance
management system.
iii. Building strategic business compliance management system will identify flaws in the
system. The manager or the responsible individual should take immediate action to
rectify the flaw to control the situation before it gets too big to handle.
iv. Employee training is another important strategy to avoid any compliance failure in the
business. Trained employees will recognize and report any compliance violation to
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RESEARCH AND COMPLY WITH REGULATORY REQUIREMENTS
the responsible person which will help in building a sound corporate compliance
culture in the organization.
5.b.
The best way to avoid any business compliance violation is to take immediate action, even
before any complains are made to the responsible person. This is only possible when the
business organization has adopted a sound corporate compliance culture in the organization
with regular monitoring of the compliance system in business operations. Also, accelerating
from manual business operations to automated business operations like monitoring and
reporting will reduce human error with regular flow of data and information (Daniel, et al.
2019)
6.
The two very essential and compulsory insurances required in hospitality business are
i. The Professional Liability Insurance- This type of insurance covers negligence and
laxity claims which may be caused by any failure in business operation. This type of
insurance policies is also known as errors and omissions insurances. Any damage by
fire, water, theft or grievance to third party due to negligence of the hospitality
organization is covered by this insurance.
ii. Employee Compensation Insurance- This type of insurance covers medical bills,
disability benefits and causality benefits during working hours of any employee.
7. The three important compliance records that every business organizations need to keep in
the file to avoid any compliance violation are:
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RESEARCH AND COMPLY WITH REGULATORY REQUIREMENTS
I. Accounting Compliance Records- This type of records documents daily business
transactions. It comprises of data about income, expenses and equity. They can be
complied as financial statements. It helps in understanding the actual scenario of the
business and planning strategic business objectives. They are essential to file income
tax returns.
II. Legal Documents- This type of records comprise of legal documents depending on
the structure and nature of the business. It can comprise of business licences and
permit certificates.
III. Insurance Documents- This type of records comprises all types of business insurances
covering different aspects of the business. These records are necessary when claiming
reimbursement during accidents or loss in the business.
8.
The six fundamental principles that make a simple contract legally binding are:
i. The Offer- An offer is a term of eagerness by one party to agree on certain terms with
another party accepting that the agreement will develop into binding when accepted
by the responsible individual.
ii. The Acceptance- the Acceptance is the final expression of concerned to proceed into
the binding by respective concerned individuals (McKendrick, 2014). Acceptance can
also be accepted by authorized person in absence of the concerned individual.
iii. Competent Parties- Individuals except who are minors, mentally unstable, drunk and
drugged is competent to fulfil the requirements to enter into a contract.
iv. Lawful Subject Matter- The subject matter upon which the subject matter will be
contracted should be lawful and should not be banned or prohibitive.
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RESEARCH AND COMPLY WITH REGULATORY REQUIREMENTS
v. Mutuality of Obligation- When entering a contract both the parties should agree upon
its terms and conditions so that any future misunderstanding can be avoided.
vi. Consideration- This is the final and important stage of the process and vital in
enforcement of the contract. The consideration can be revenue consideration or a
guarantee. A consideration under a contact should be agreed by both the parties and
also it should clearly recognized by its terms and conditions according to the contract.
9.
Work Health and Safety Act 2011.
9.1. Work Health and Safety Act 2011.
9.2. The primary framework of Work Health and Safety Act 2011 is to look after and protect
welfare, safety and health of the employees at workplace. It also protects and safeguards the
health and safety of the stakeholders who might be affected by the work. Its basic objective is
to minimize risks and hazards at workplace.
9.3.
i. It is the duty of an employer to comply with Work Health and Safety Act 2011 and
minimize the risks of employees and stakeholders associated with the work. The
employer should do everything to achieve the required guidelines of Work Health and
Safety Act 2011.
ii. Risk assessment is one of the aspects that falls under this act and is an important
aspect to ensure safety at workplace.
iii. Employee training is important to make aware the workforce about the possible risks
and hazards associated with the work and how can it be avoided and what should be
done in a time of crisis.
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RESEARCH AND COMPLY WITH REGULATORY REQUIREMENTS
iv. Regular risk assessments and analysing the gap between risks and prevention and
addressing it, is another compliance step which can reduce risks at workplace.
9.4. The one behaviour which would be non-compliant for the area is the complexity of the
work which can create confusion among the workforce that can result in incompletion of the
work.
9.5. The main consequences of non-compliance can result into confusion among the
workforce, risking both professionalism and safety of the employees and other stakeholders.
It will also affect in the legal status of the business. The business can also be exposed before
lawsuits; federal agencies can conduct audits and raids, impose hefty fines and can even
cancel business licence. In worst case scenario, non-compliance can dead to imprisonment
due to meeting legal standards.
EEO/Harassment/Anti-Discrimination
9.1. Equal employment opportunity (eeo) and anti-discrimination Act of 1972.
9.2. The primary objective of this Act of Equal employment opportunity (eeo) and anti-
discrimination is to ensure that all employers will be responsible for generating a work
environment where all employees are treated equally and fairly.
9.3. In Australia, every business organizations have to ensure that they follow the Equal
employment opportunity (eeo) and anti-discrimination Act of 1972 by creating a workplace
which is free from any kind of inequity and harassment towards any employee. As an
employer it is significant to understand and recognize the rights and responsibilities under
EEO law. Implementing an effective anti discriminatory law at workplace will allow the
employees to perform in a fair workplace which will enhance employee performance and
employee loyalty.
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RESEARCH AND COMPLY WITH REGULATORY REQUIREMENTS
9.4. Discrimination at workplace will create chaos among the employees. It will create a
negative impact on the performance of the employees which will directly affect the
performance of the organization.
9.5. The main consequences of non-compliance can result negatively in the legal status of the
business. The business organization can be exposed before lawsuits; federal agencies can
conduct audits and raids, impose hefty fines and can even cancel business licence. In worst
case scenario, non-compliance can dead to imprisonment due to meeting legal standards.
PAYG withholding
9.1. Pay As You Go Act 1999
9.2. Under the PAYG Act 1999, the employer withholds amount from the payment of the
employees to help the payee meet their end of the year tax liabilities.
9.3. To withhold some amount of payment from the employee, the employer must be
registered for PAYG. Also, the employer needs to check before entering a contract that if the
individual is legal to work in Australia.
9.4. Non Compliant PAYG withholders are denied any Tax Deduction. Therefore, non
compliance can result into payment of heavy taxes.
9.5. The penalty of non-compliance can result negatively in the legal status of the business
also the business will be refused any kind of tax deduction which will ultimately result into
revenue loss for the business.
Food and Safety
9.1. Food Act 2006
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RESEARCH AND COMPLY WITH REGULATORY REQUIREMENTS
9.2. The primary objective of Food Act 2006 is to make sure that all food and restaurant
businesses sell food that is safe and suitable for the consumers. This act also makes sure to
avoid any false conduct in food business.
9.3. As an employer, the responsibility needed to comply with the regulatory requirements
are-
 Meet food and safety standards according to Food Act 2006.
 Train the employees related to the business about the food safety and competent in
handling and addressing any risk in the business operation.
9.4. Neglecting the Food Act 2006 will bring serious consequences in the business and it will
bring a negative image in front of the customers and the employees that will ultimately
negatively affect the business.
9.5. Any kind of negligence regarding food manufacturing or for human consumption shall
lead to hefty penalty, loss of business license or even imprisonment.
Workplace relations/Fair work Act
9.1. Fair Work Act 2009
9.2. The primary objective of the Fair Work Act 2009 is to ensure fair and reasonable
workplace environment and regulate employee relations.
9.3. According to the Fair Work Act 2009, the employer should ensure that the rights and
responsibilities of employees are protected and no discrimination happens within the
workplace (Creighton & Forsyth, 2012).
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RESEARCH AND COMPLY WITH REGULATORY REQUIREMENTS
9.4. Non Compliance of Fair Work Act 2009 will bring discrimination and unfair favouritism
in the workplace. This will result in demotivation of employees, employee turnover and poor
performance of employees.
9.5. The penalty of non-compliance of Fair Work Act 2009 is hefty civil penalty.
Consumer Protection/ACL
9.1. The Australian Consumer Law 2010.
9.2. The primary objective of ACL 2010 is to protect the consumer law and fair trading. The
Act is based upon already existing Trade Practice Act (Law, 2010).
9.3. A business must obey the rules and restrictions of the Act and engage in a fair deal with
the consumers.
9.4. Non Compliance of ACL 2009 will result in violation of consumer protection law.
9.5. As a result, of negligence of ACL, 2009 the business may face legal as well as civil
consequences.
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RESEARCH AND COMPLY WITH REGULATORY REQUIREMENTS
Reference
Canciani, D. (2019). The Politics and Practice of Occupational Health and Safety Law
Enforcement (pg 175). Palgrave Macmillan.
Creighton, B., & Forsyth, A. (Eds.). (2012). Rediscovering Collective Bargaining: Australia's
Fair Work Act in International Perspective (2nd edition, pg 68). Routledge.
Daniel, F., Sheng, Q. Z., & Motahari, H. (Eds.). (2019). Business Process Management
Workshops: BPM 2018 International Workshops, Sydney, NSW, Australia,
September 9-14, 2018, Revised Papers (Vol. 342). Springer.
Law, A. C. (2010). The Australian Consumer Law A guide to provisions (edition 1st, pg 7).
CHH Australia Ltd.
McKendrick, E. (2014). Contract law: text, cases, and materials. (6th edition, pg 257) Oxford
University Press (UK).
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