Hotel Legal Issues

Legal issues for hotel owners in the United Kingdom include the country’s laws and regulations which are subject to strict fire safety and hygiene rules, and failure to comply can result in hefty fines.

In addition, all hotel staff must be properly trained in fire safety procedures. Guests should also be aware that smoking is banned in all indoor public areas in the UK, including hotel rooms

Hotel businesses may have to comply with some of the following legislation.

What licences does a hotel need? 

Depending on your activities and the services you provide, you may need a variety of licenses to operate as a hotel:

• If you prepare and serve food on your premises, register with the local authority’s environmental health department.
• In England and Wales – You need a license from your local licensing authority if you plan to sell alcohol. The Gov.uk website has more information about alcohol licensing in England and Wales.
• In England and Wales – a personal license granting authority to oversee alcohol sales to a designated responsible person (such as you or your manager).
• In Northern Ireland – an alcohol licence from the county court. On the NI Direct website, you can find out more about alcohol licensing in Northern Ireland.
• In Scotland – a local Licensing Board licence for the premises. Visit the Scottish Government website to learn more about alcohol licensing.
• In Scotland – a personal licence from the local Licensing Board. A personal licence holder must be present at all licensed premises in Scotland to sell alcohol.
• If regulated entertainment is provided, a premises licence is required – see Gov.uk for more information (but note that many types of entertainment are no longer subject to regulation).
• In Great Britain – When you have more than two gaming machines, you need a licensed premises gaming machine permit from your local licensing authority. Licensed premises can operate up to two low-prize/low-stake gaming machines in category C or D under the terms of their licence, but they must notify their local authority. HM Revenue & Customs (HMRC) will also require the premises licence holder to register for Machine Games Duty. Depending on the terms of your alcohol license, you can have up to a certain number of machines on your premises in Northern Ireland.
• Businesses and organisations can legally play music for their employees or customers with the ‘TheMusicLicence’ licence from PPL PRS.
• Each television license covers up to 15 accommodation units at one site, including the proprietor’s own living accommodations if applicable. A single television licence covers up to 15 accommodation units at one site. There is an additional fee for each additional unit.
• In-room entertainment systems or DVD libraries that require appropriate copyright licensing. On the Visit Britain website, you can find more information about copyright licensing for hotels, including DVD and film licensing.
• Your local authority may require a ‘special treatments license’ if you offer massages and certain special treatments (such as manicures, acupuncture, and electrolysis) on the premises. Consult your local authority. This license is often charged.
• Local authorities must approve wedding and civil partnership ceremonies held on their premises.
• A ‘pavement dining licence’ is needed to put chairs and tables outside on the pavement.
• Computerised records of individuals’ personal details (such as guest records) must be registered with the Information Commissioner’s Office (ICO).

Trade specific legislation

A significant amount of regulation applies to the hotel industry. In order to ensure compliance with all legal requirements, you may need to seek specialist assistance.

There are different rules for ‘hotels’ and ‘private hotels’. Anyone who appears willing and able to pay (not drunk, for instance) and is in a fit state can stay in ‘hotels’ and get food, drink, and accommodation. There are generally no food or drink services provided by ‘private hotels’ and they only accept advance bookings.

You may find the following information relevant to you. There are many other factors to consider in addition to those listed here.

Accommodation and guests

You may be required to comply with special hotel legislation depending on how many letting bedrooms you have. Your tariff should clearly indicate what the price covers, including meals, service charges, VAT, etc., if you can accommodate eight guests or more. Guests over 16 must be listed in a guest register (although this legislation has been identified as ‘obsolete’ and may soon be abolished).

Your room rates should be displayed clearly and transparently in most cases.

The Trading Standards Business Companion website provides guidance notes on a range of topics relevant to accommodation providers, such as hotels. Trading Standards departments in your local authorities can also provide information.

Alcohol licensing legislation

Licensing and licensing requirements apply to the sale of alcohol, so make sure you get the appropriate license. Scotland, Northern Ireland, and England and Wales regulate alcohol sales differently. Licensing information can be found at:

• The Gov.uk website (England and Wales)
• NI Direct
• The Scottish Government website

Food safety and hygiene

There is strict food safety legislation that must be followed by all businesses in the food industry. Regulations covering food safety cover the preparation, storage, and sale of food. It is important that at least one member of your staff has gained a food hygiene qualification and has been trained in food safety. The local environmental health department must be notified before you open your business. Keeping your operating areas hygienic and in compliance with the requirements of the Food Safety Act can be difficult without the advice and guidance of your local environmental health officer.

The HACCP system should be used to manage food safety. A HACCP system identifies possible food safety problems and provides procedures for preventing them from occurring. Visit the Food Standards Agency’s website to learn more about HACCP.

Refrigerators must always be kept at the right temperature when storing perishable foods, like fish and meat. In the same way that raw and cooked foods should be stored separately, different types of foods should be stored separately.

Individual businesses’ food hygiene inspection results are published online by local authorities. Welsh and Northern Irish food businesses must prominently display food hygiene information on their premises by law.

Food waste

Food waste should be disposed of correctly if your business produces it – most catering businesses do. It cannot be fed to livestock and must not contaminate the environment. Make sure your waste carrier is properly authorised if you use one to dispose of your waste. The Gov.uk website has more information about your responsibilities.

Food labelling and information regulations

Hotels (which do not produce pre-packaged foods) don’t have to comply with most aspects of food labelling legislation, but you will have to provide information about 14 specified allergens in your food. Alternatively, you can provide this information verbally or on your menus. The allergen information for each food item must be provided separately when serving buffet-style food. The Food Standards Agency’s website providesinformation on providing allergen information.

GM soya and maize are also included in the information regulations, along with additives and flavourings derived from GM sources. If you sell products containing these ingredients, your staff must be trained and provided with the information they need to provide customers with any questions they may have about GM products. It is important to let customers know that this information is available on your menus and other notices. Food and ingredients that have been irradiated or treated with ionising radiation must also be labelled as such.

All food on your menu should, of course, contain the ingredients listed on it. Testing samples of food to ensure it is what it says it is not uncommon for trading standards officers.

For information on the regulations that must be adhered to contact your local environmental health officer (EHO).

Food records

Businesses that purchase food and drink supplies are required by law to keep certain records. Name and address of the supplier, type of product, and delivery date should all be recorded. For non-perishable food records, five years must be kept, while for perishable food records, six months is required. It is often sufficient to have an invoice from the supplier.

Duty-paid tax stamps for spirits

In order to prove that UK duty has been paid on bottles of spirits over 30% alcohol by volume, they must be stamped with a tax stamp. Stocking or selling any bottle that does not have this mark is illegal.

Workplace smoking ban

There is no smoking allowed in workplaces such as restaurants or in public areas of hotels (except in designated hotel rooms). ‘No Smoking’ signs must be displayed appropriately. Please contact your local authority for details of how the ban applies to you as it differs in different parts of the UK.

E-cigarettes (vaporisers) are not currently subject to smoking bans, but Wales has discussed banning their use in public indoor places.

Gaming legislation

Machine Games Duty (MGD) applies to coin-operated amusement machines that offer games of chance. You only need to notify your local licensing authority if you only have two gaming machines in an alcohol-licensed premises. You will need a licensed premises gaming machine permit if you plan to provide more than two machines. The number of gaming machines you are permitted to own is determined by your alcohol licence in Northern Ireland. Upon granting the license, the licensing authority will determine how many you can have.

The Gambling Commission website provides information about gaming legislation in Great Britain. There is information about gambling laws in Northern Ireland on the website of the Department for Social Development in Northern Ireland (DSDNI).

The Gov.uk website has more information about MGD.

Employment matters

The employment legislation must be followed by anyone who employs staff. Among the key areas of legislation are recruitment, employment contracts, pay, working hours, holidays, and employment policies, as well as sickness, maternity, paternity, discrimination, discipline, grievances, dismissals, and redundancies.

Illegal workers

An employer must ensure that someone they hire is legally allowed to work in the UK. A high percentage of seasonal, temporary, and casual workers are employed in the catering and hospitality industries. In the event that employers fail to make the necessary checks before hiring illegal workers, they may be fined. The Gov.uk website has more information about preventing illegal work.

Equality and discrimination law

Whether they are old, disabled, were reassigned their gender, married or civil partners, pregnant or nursing, or haven’t given birth, you must not discriminate against them. If you want to avoid unfairly discriminating against disabled people, you may have to make reasonable adjustments to your workplace.

Guests and members of the public should be treated with respect at every aspect of your business operations. A guest cannot be turned away based on his or her sex, race, disability or sexual orientation, for example. If you accept walk-in customers who haven’t made reservations in advance, you can turn them away only if you see them as unreliable or intoxicated. So long as you don’t breach equality legislation, you can pick and choose your guests if you’re a legally defined private hotel (see above).

Your legal obligations can be found on the websites of the Equality and Human Rights Commission and the Equality Commission for Northern Ireland.

More information

A number of different aspects of the law can be found on the Trading Standards Business Companion website, including food and drink pricing and payment, weights and measures, and fair trading.

The Visit Britain website provides an overview of legislation relevant to hotel businesses.

Health & Safety, fire

All aspects of health and safety are covered by the Health and Safety at Work Act and its numerous regulations. All employees and guests of employers are expected to maintain a safe and healthy working environment. A written health and safety policy statement is required for companies with five or more employees.

Fire safety regulations must be followed by all employers with business premises. Hotels, which provide accommodation both for guests and staff, should pay particular attention to this. In order to comply with the regulations, you must conduct a fire risk assessment and implement fire precautions. Among them are fire alarm systems, extinguishers, and clearly marked escape routes. It is your responsibility to ensure the safety of your staff and guests. A guide for businesses providing paying guests with sleeping accommodation has been published by the Department for Communities and Local Government. On the Gov.uk website, you can download this and other fire safety guides.

Insurance for a hotel

It is important to have insurance coverage when starting a hotel business. Describe your business’s operations in detail to an insurer. You will then be recommended what type of coverage you should have. The following might be included:

• Employer’s liability
• Public liability, including indemnity against food poisoning
• Premises fixtures and fittings glass/crockery breakages and stock
• Freezer breakdown
• Cash and loss of money
• Visitors’ belongings and personal effects
• Theft by employees
• Computer failure/data loss
• Business interruption
• Motor insurance
• Legal expenses

Any specific liabilities that may arise – such as guests using the hotel’s pool or being transported – must be covered.

Insurance policies tailored to the hotel industry are available from a number of companies. For comparison purposes, you should obtain several quotes. In addition to offering discounts on insurance services, many trade associations also offer specialist insurance to their members. Through its IoH Privileges scheme, the Institute of Hospitality offers members discounts on a range of services, including insurance. Members of UKHospitality can access competitively priced insurance policies through their preferred specialist provider.

Using an insurance comparison form, you can compare insurance quotes to discover the differences between them.

Conclusion

Hotel owners need to be aware of legal issues surrounding cyber crime and data privacy, consolidation, millennials increasing demand for the latest technology and personalisation, financing, complex supply chains, health and safety and compliance. Hoteliers also need to ensure they hold the correct insurance both public and employers to prevent any future claims or legal issues from guest and ex employees.