An Analysis of Legal Risks and Regulations in Hospitality

This reflective report delves into the legal risks inherent in the hospitality industry. It examines critical areas such as data protection, highlighting the importance of safeguarding customer and employee information under the Data Protection Act 1998, emphasizing the potential legal ramifications of data breaches. The report also addresses health and safety regulations, as outlined in the Health and Safety Act 1974, underscoring the responsibility of employers to provide a safe environment. Furthermore, the report explores food hygiene practices, referencing the Food Hygiene Act 1990 and the implementation of HACCP, emphasizing the need for clean food preparation and storage. Risk management, licensing acts are also discussed, illustrating how compliance with these regulations is essential for avoiding legal issues and ensuring smooth business operations. The report concludes by emphasizing the importance of adhering to these legal frameworks to maintain a positive environment for customers and employees, thereby ensuring profitability and market share.

Reflective
Report

Table of Contents
INTRODUCTION ..........................................................................................................................1
MAIN BODY ..................................................................................................................................1
CONCLUSION ...............................................................................................................................4
REFRENCES...................................................................................................................................5

INTRODUCTION
Legal risk refers to type of risk which will consider as consequence which leads to action
which will break the rules and regulation developed by government of a particular industry. In
respect of hospitality industry legal risk is consider as term which impact on business in negative
manner. Hospitality industry is one of the vast industry which include several departments such
as food services, accommodation, entertainment and many more (Allen and Truman, 2016).
Topics which are included in this report are legal legislative risk which manager and and
employees must be consider in respective industry such as data protection, food hygiene, risk
management and many more.
MAIN BODY
In hotel industry there are various factors which may leads to legal risk if hotel or
organization not follow it such as data protection act, health and safety act, food hygiene act and
many more. If an organization not follow it they may go through several issues such as have to
fine of particular amount, go to jail, have to close workplace for particular days and many more.
There are several legal risk which may conduct in hospitality industry such as overstepping of
bonds, obligating taxes, use of wrong food material and many more. Some of the major factors
which must be consider by hospitality industry are given below:-
 Data protection: Now a day personal information are being misused for various reason
and it is essential for everyone to protect their data in effective manner so it will be
secure from any kind of wrong attack. In hotel industry personal information as well as
data of customers and employees are very essential because it will help them in
developing significant relationship with customers and motivating employees so that they
conduct work properly (Bridge and O'Neill, 2012). But this factors also enhance
responsibility of organization i.e. data of a person must be secure in appropriate manner
so that it can not be go in wrong hand who can misuse it. At hotel industry information of
a person can be taken through three ways i.e. first taking personal information which may
include phone number, e mail id, name, address etc., second it will include data related to
customers interest and at last it include information of card number, pass word and so on
through payment method. In this respect this government also develop legislation which
leads to security of data i.e. data protection act 1998 (Quinlan and et.al., 2019). So it is
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necessary for hotel organization to take care that their customers and employees
information will not be misused by anyone. This is so because if they not do so they may
face legal risk such as have to provide huge fine to victim, situation leads to jail, expire of
licence and many more.
 Health and Safety: The major aim of hotel industry is to provide safe and healthy
surrounding to their service users for which they have to maintain proper and effective
environment. For this government of United Kingdom also develop legislation i.e. health
and safety act 1974 which define that in an organization it is responsibility of employees,
employers,contractors and suppliers to develop practices which leads to health and safety
environment (Cegielski and Jones‐Farmer, 2016). This legislation is generally adopt by
those hotel which have five or more then five employees. At respective industry there are
various way which can be adopted in order to ensure health and safety at workplace such
as train employees, motivate employees, make clear rules and regulations and many
more. There are several practices which must be adopted by hotel in order to develop as
well as maintain respective situation such as fixing of warning alarm, fire sign,
emergency exit, hygiene sign and so on. It is necessary for respective sector so that they
may avoid legal risk such as fine of huge amount, go to jail, loss due to hazardous
situation and many more.
 Food Hygiene: It is necessary for hotel industry is to maintain and adopt effective
practices which will leads to food hygiene. For which they can adopt legislation which is
developed by government of United Kingdom i.e. food hygiene act 1990 (Narkhede and
et.al., 2014). This will describe about practices which is adopted by respective industry in
order to maintain proper hygiene of food and beverage. For example preparing food in
clean kitchen and with clean equipments, use natural food and ingredients, avoid
improper style of cooking and many more. Along with this they must also adopt HACCP
i.e. Hazard Analysis Critical Control Points, this will include information related to
analysis, regulation and location which is based on hazards which may occur due to
provided food (Conrad and Newberry, 2012). The respective legislation include several
consideration related to temperature of refrigerators, food storage, use of equipments,
temperature for preparing meat and many more. Along with this it will also include
information related to sanitize cooking surface,sinks, cloth which are wear by chef while
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cooking, clean equipments and many more. In an organization who is conducting
business in hotel industry need to adopt this because if they not follow proper guideline
and legislation they may face legal risk which directly and indirectly impact on their
business operations and functions.
 Risk Management: It is one of the essential factor which must be adopted by a company
in order to develop as well as maintain effective situation. This will also help them in
avoiding or minimising risk situation which may occur at workplace due to several
reasons like use of improper temperature during cooking, use of improper equipments
and many more (Gundry, Ofstein and Kickul, 2014). So it is necessary for a hotel to
adopt risk management in effective manner like other industry companies adopt. In
respective industry there are several kind such as property risk- hotel industry face large
range of property risk so in order to avoid this they may adopt fire alarm, fire extenuation
and many more. Premises risk it is related to security risk because everyday numbers of
visitors visit at hotel and for ignore this risk hotel may adopt advance safety measures.
Along with this another risk is liquor liability risk it is for those hotel who sell liquor at
their premises and it refers to situation when an individual get tipsy and of they go from
hotel area they may go through accident or any other altercation. Along with this there
are also several other risk which must be consider by hotel such as automotive liability,
weather risk and many more.
 Licensing Act: Hotel industry is consider as one of the large industry which is growing
day by day and they also need to consider huge number of rules and regulation so that
they operate business in effective manner. Every hotel who are having five or more
employees need to follow licensing act 1872 even it is a bar or any multinational hotel.
This is so because it will help them in conducting their business operations and functions
in effective an appropriate manner (Heath and Reed2013). There are several kind of
licenses which must be consider by hotel industry such as tax registration number, food
safety and serving licence, location premise permission, liquor license, alarm permits and
many more. By adopting and considering these licenses a hotel organization able to
conduct their business at local, national and international level in effective manner. Along
with this if they not consider these acts and start operating their business they may face
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several legal risk such as lose operations permission, give huge amount of fine,
cancellation of licence and many more.
For hospitality industry it is necessary to consider these factors in order to avoid legal
risk at workplace . This will also help them in maintaining effective environment which leads to
satisfied and happy customers as well as employees at hotel industry. Along with this by
adopting these type of practices as well as rules and regulation hotel industry able to conduct
their business operations and functions in effective manner. This will also help them in gaining
huge profitability ratio as well as market shares.
CONCLUSION
By evaluation above mentioned points it can be conclude that every industry go through
legal risk which impact on their business operations and functions in negative manner. So in
order to avoid these situation an organization employer and employees need to adopt proper legal
rules and regulations. In respect of hospitality industry there are several legal aspects which hotel
or company need to concern such as data protection for protecting personal information of
customers and employees. Along with they also need to adopt health and safety legislation which
help in maintaining high quality services at hotel as well as it will also ensure that there is not
negative impact is occur at customers health. Moreover when a hotel adopt licence legislation
they able to operate as well as establish their business functions and operations in effective
manner.
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REFRENCES
Books and journals
Allen, S. and Truman, C., 2016. Women in business: Perspectives on women entrepreneurs.
Routledge.
Bridge, S. and O'Neill, K., 2012. Understanding enterprise: Entrepreneurship and small
business. Macmillan International Higher Education.
Cegielski, C.G. and Jones‐Farmer, L.A., 2016. Knowledge, skills, and abilities for entry‐level
business analytics positions: A multi‐method study. Decision Sciences Journal of
Innovative Education. 14(1). pp.91-118.
Conrad, D. and Newberry, R., 2012. Identification and instruction of important business
communication skills for graduate business education. Journal of Education for
Business. 87(2). pp.112-120.
Gundry, L.K., Ofstein, L.F. and Kickul, J.R., 2014. Seeing around corners: How creativity skills
in entrepreneurship education influence innovation in business. The International
Journal of Management Education. 12(3). pp.529-538.
Heath, K.L. and Reed, D.L., 2013. Industry-Driven Support (IDS) model to build social capital
and business skills of low-income entrepreneurs with disabilities. Journal of Vocational
Rehabilitation. 38(2). pp.139-148.
Narkhede, B.E. and et.al., 2014. Impact of entrepreneurial skills on the firm’s performance:
Evidence from manufacturing SMEs in India. International Journal of Indian Culture
and Business Management, 8(2), pp.216-236.
Quinlan, C. and et.al., 2019. Business research methods. South Western Cengage.
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