( THCC 318)

Legal Aspects in
Tourism
and Hospitality
Instructor: Maritoni Medalla
 Remember:
• Use earphones or headphones to avoid
outside noise and distractions.
• Always have a pen and paper ready to take
down notes.
• Mute your microphones.
• Ask your teacher for any clarifications.
 Introduction
Lesson 1 to Hospitality
DISCUSSION OVERVIEW
Law
 What is
Hospitality Law?
Hospitality law is a legal and social practice related to
the treatment of guests or those who patronize a place of
business. Related to the concept of legal liability,
hospitality laws are intended to protect both hosts and
guests against injury, whether accidental or intentional.
Hospitality laws are related to foodservice, travel, and
lodging industries. It governs the various nuances of the
hotel, restaurant, bar, spa, country club, meeting, and
convention industries.
 Why is
Hospitality Law
important?
They were created to ensure that restaurants, hotels, motels, and
other public accommodations are providing safety measures
within their establishments to ensure the well-being of their
patrons. People are expecting to eat good foods when they visit a
restaurant. When lodging at a hotel or motel, people are expecting
a good night's stay free from any type of harm. They should be
protected from any type of criminal activity, such as robbery or
assault. What protects us from harm are the laws in place to lessen
the chances of these things occurring.
 Self-
Check
Questions
Self-Check Questions No. 1
Make a list of situations where hospitality laws should
be applied to protect or prevent harm to both hosts and
guests.
Overview of Hotel Lesson 2
and Catering Law DISCUSSION OVERVIEW
The following are laws regulating hotel and catering issues in
various countries especially in places like the US and the UK:
• Theft or crime committed within hotel premises
• Guests refusing to settle their  bills
• Ensuring the  safety of  hotel guests
• Breach of contracts for reservation
• Health and safety of employees in catering operations
• Children and young people working in catering
• Dismissal of employees
• Safety of guest’s property
• Catering/restaurant permits
• Price lists and stipulations
• Safety and working conditions for employees
 Hotel's Duty to Guest Property
Hotel operators have a duty to their guests and their guests’ property. This
duty of care to the guests does not ensure the guests’ safety, but requires
the operator to “act prudently and use reasonable care”. 
Most of the hotels are also under the bailment policy. A bailment is the
delivery of an item or property, for some purpose, with the expressed or
implied understanding that the person receiving it shall return it in the
same or similar condition in which it was received when the purpose has
been completed. Safety deposit boxes and luggage storage are common
examples of bailment for the hospitality industry.
 Restaurants Duty to the Guest or Customer

Most of the restaurant operators worldwide must sell food that is

suitable for buying and selling. “Truth in Menu” laws govern
descriptions of food in menus. These laws ensure that the customer
receives what the menu says he or she will. They also govern the
ingredients, nutritional descriptions, preparation style, and more.
The Food and Drug Administration (FDA) and the National
Restaurant Association produces a helpful guide for the restaurant
industry.
 Hotel's Duty to Employees’ Safety
An employer must take reasonable care to ensure the
employees' safety at work by implementing the risk
management process. So therefore an employee may sue
an employer for breach of an implied term of his or her
contract of employment. At common law, an employer is
under a duty to take reasonable care to ensure the health
and safety of his or her employees.
 Hotels Duty to Inform Prices of Products and
Services
In the hospitality industry, consumers are informed of prices
using price lists. These must be displayed in all pubs,
restaurants, and similar establishments where food and drinks
are served. Everything that is served must be priced. The
prices indicated in the price lists must be final prices, i.e. they
must include any additional charges (e.g. VAT). Price lists
must be displayed or provided as follows:
 • The price list must be provided in the form of a food or drinks
menu before taking the order or on the specific request
• Food and drinks menu must be displayed on every table.
• Food and drinks menu must be otherwise displayed where it is
legible.
In the event of any theft or crime committed on the premises of a
hotel, this must be reported to the Police. Generally, every hotel
must also report to the Police cases of death or lunacy of guests on
their premises. In another vein, when a guest refuses to settle a bill
for services rendered, the hotelkeeper can secure payment of bills by
retaining the property of the guest.
 Self-
Check
Questions
Self-Check Questions No. 2
Write A if the statement is True and B if the statement
is False. Write your answers on the space provided.
• The hotel and catering law regulates the following issues:
the safety of guest’s property, fair employee compensation,
and addressing risk management in the workplace.
• An employee can report the employer if he is given
additional work aside from what is stated in the contract
that could cause potential harm.
• Base price of foods and drinks must be displayed on every
table.
• Hotels must provide the facilities and amenities indicated
upon purchase.
• Hosts will be liable if guest information will be leaked due
to negligence of duty.
 Important Laws
Lesson 3 Applicable to The
DISCUSSION OVERVIEW

Hotel Industry
 The majority of the legislations governing the
hospitality
industry can be divided into three main sectors.
I. The first head is the legislation for the construction and
commissioning of hotels, restaurants, guest houses, and other
establishments, and includes the industrial licensing policies,
land laws and various development control orders issued by
the central and state governments.
II. The second head has legislation for the operation,
maintenance, and management of establishments, food, and
hygiene standards. It also includes insurance laws, fire safety
and weights, and measures regulation. Further, various
licenses, such as a liquor license, lodging house license,
eating house license, police permissions, a license
under the Food and Drug Administration Act.
III. The third head has rules regarding taxation, employment,
and other contractual relationships. This includes laws on
income tax, service tax, expenditure tax, excise duty, luxury
tax, and entertainment tax.
 Self-
Check
Questions
Self-Check Questions No. 3
Give 3 examples of laws, licenses, or policies on each
sector of hotel legislation.
• First sector
• Second Sector
• Third Sector
 Importance Of

Knowledge of Laws Lesson 4

DISCUSSION OVERVIEW

in the Hospitality

Industry
 Employee Welfare
There are permanent and seasonal regulated differently under the
law. Considering that the hospitality industry tends to operate 24
hours a day, throughout the year, entrepreneurs and managers have
to guard against violation of wage and overtime laws, which guard
against overworking and underpaying employees. It is also
important to know about occupational health and safety laws that
protect employees at work.
 Client Service
Operators in the industry are expected to ensure clients' welfare and
are legally liable when they fail to meet it adequately. Client
services range from food preparation and service; ensuring general
hygienic conditions, and offering adequate security to prevent
criminal activity, which includes assuring the safety of guests and
protecting their privacy and confidentiality. Operators need to know
their legal duties and refrain from placing clients at risk of injury,
illness, embarrassment, or loss due to ignorance or negligence.
 Risk Exposure
Hospitality industry service providers face the risk of lawsuits based
on breach of contract arising out of relationships with suppliers and
guests, tortuous claims such as when a guest gets injured due to
negligence and bankruptcy when the business is not making enough
to pay the bills. The industry is also vulnerable to risks arising out
of gambling and liquor licensing laws that regulate when and where
alcohol can be served and the legal drinking age, as businesses can
be held liable even when it is their guests who breach the law.
 Legal Compliance
There are several relevant laws that service providers must
follow. Laws on guest-tenant relationships, maintenance of
public health through the creation of smoke-free zones and
food hygiene standards apply directly to the industry.
Legislation on consumer safeguards, such as protection from
misrepresentation and false advertising, as well as disability
discrimination due to lack of access, also affect the industry.
 Self-
Check
Questions
Self-Check Questions No. 4
Explain the importance of knowledge of laws to the
employees, clients, regulating risks, and legal aspects.

• Employee welfare
• Client Service
• Risk Exposure
• Legal Compliance