1

TABLE OF CONTENTS

Introduction 2

Classification of Hotels
3

Classification – My Pond Hotel

4

Facilities 7

Market Segmentation
8

Rates
9

Unique Selling Points

10

Housekeeping
12

Housekeeping Schedule
13

Cleaning Plan
14

Linen Control 16

Labour Contracts
17

Acts That Apply To The Hospitality Industry

19
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The Tobacco Products Control Amendment Bill

20

The Liquor Act

21

Bibliography 23

Introduction

This assignment consists of three main parts – the research; which is on My

Pond Hotel. It includes the star rating of the hotel and the ways in which
different establishments may be classified. The Houskeeping Department
which includes the cleaning plan and linen control for the hotel. And the
types of labour contracts that could be used while setting up a Rooms
Division Department. Research was also done on the new Tobacco Law as
well as the rules regarding Liquor Licenses.
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CLASSIFICATION OF HOTELS

There are many different ways in which a hotel can be classified. Classification can
be based on the type of grading it has (Star grading). Hotels are also classified
based on location (motels, suburban hotels, airport hotels); based on size of
property (small hotel, medium sized, large hotel); based on the level of service
(luxury hotels, budget hotels); based on length of stay (transient hotels, residential
hotels); based on theme (Heritage hotels, Ecotels, Boutique hotels); based on target
market (resorts, convention hotels, casino hotels) and so on. I personally think that
using the star grading system is one of the best ways to classify a hotel. Though
there are a few cons to using this technique.

There is no real international hotel ratings system. Ratings of hotels in different

countries, if they exist, typically come from the government or quasi-government
sources, independent ratings agencies or sometimes the hotel operators
themselves. The problem with that is some of those star gradings are accepted
globally whereas some are not. Not that there is anything wrong with that.

For example: In France: The government conducts a star rating system ranging
from one-star for simple accommodation to four-star for a deluxe hotel. Hotels in
Germany and some Scandinavian countries have a one- to five-star rating, which
the government reviews every three years. In Britain – the Automobile Association
(AA), Royal Automobile Club (RAC) and English Tourist Board have agreed to a
standardized hotel rating system. Hotels in South America are typically granted a
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star ranking from the government tourism ministry at the date of the hotel's
opening, which may not be modified as the property ages.

This does create a bit of a problem and the International Standards Organization
(ISO) and the World Trade Organization (WTO) met in 1998 to jointly discuss
harmonizing hospitality standards. However, the delegation got only so far as to
recommend that standards be set in key areas of housekeeping, front office, and
food and beverage but nothing was implemented. Similarly, the European Union
addressed the issue at a Forum in December 2002, but no definitive steps have
since been taken towards creating a European-wide hotel standards system.

The Tourism Grading Council of South Africa (TGCSA) is responsible for the quality
control of hotels in the country. It employs a five-star grading system and, to ensure
credibility and independence, a feedback mechanism to monitor customer
expectations.

MY POND HOTEL – CLASSIFICATION

My Pond Hotel is located at Van Der Riet Street, Port Aflred in South Africa. It is
situated right at the centre of town; within walking distance to the shopping centre
and is close to most of the businesses as well; which is why one may classify it
based on location – city centre. It can be considered as an Ecotel or Eco Hotel –
since it is the first and only hotel in the vicinity that uses geothermal energy for
heating purposes. Also the theme of the Pond can be seen throughout the hotel;
whether it’s the logo, the carpets in the lobby, the restaurant as well as the
paintings. Looking at its size; it has only 17 rooms – the obvious conclusion can be
made that it is a small hotel. My Pond Hotel – though having 7 suites; giving the
guests an overall excellent service, cannot be really considered a luxury hotel as
that would put it on par with the Hitlon Hotels or The Grand Hyatt. It is more of a
mid market hotel that offers its services to the upper middle and middle class if one
can put it that way. It is definitely a transient hotel as guests usually do not stay for
more than 3 odd days and some may just come in while on the way to another
town.
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My Pond is four star hotel – graded by the Tourism Grading Council of South Africa.
Star grading is an independent assessment of what guests can expect to find at an
accommodation establishment or conference venue. It’s based on the overall
quality and takes into account the facilities one would expect to accompany a
particular star grading.

There are certain criterion that need to be fulfilled for a hotel to get a four star
grading – the building exterior, bedrooms, bathrooms, public areas, dining facilities,
food and beverage, service and services as well as the housekeeping are the
departments on which hotels are graded. For a four star grading: My Pond Hotel
should have received an overall score of 85% to 94%. Only one item is allowed to
score a 7. All the rest need to have been 8 or more. All the service elements need to
score 8 or above.

Even in these departments there are quite a few other sub-parts that need to be
considered, but giving a broad overview of how the Hotel could have been graded:

The Exterior (This includes the Appearance of the Buildings, the Grounds and
Gardens and the Parking): My Pond is a new hotel; it is only about 5 months old.
Therefore, the building is obviously new and well kept; without any weathering or
spoilt paintwork. Since it isn’t that big and doesn’t have a ground as such – though
the land by the river is green and well kept alongwith a small fountain and some
sculptures which keep it with the Pond theme; whatever little it has is maintained
very well. It has the needed external lighting, as well as proper signage. The Hotel
has adequate parking space for its size, which is well lit as well as secure. Overall
this department would score an 8 or 8 and a half.

The Bedrooms (Includes the décor, flooring, accessories, spaciousness, linen,

temperature and lighting): Each of the 17 bedrooms are in perfect sync with the
overall theme of the Hotel, with lovely paintings in every room. The overall furniture
and furnishings are in good condition and don’t have any stains. The ceilings and
the floor are well taken care of. No water leakages or signs of sagging. There are
very few signs of misuse when it comes to the overall bedroom – the main being
that the carpets are a little flattened, though only the suites are carpeted and the
rest of the rooms have wooden floors, but very professionally done. Lights in the
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rooms are all in the right places and in perfect order; placed well enough to show off
the paintings and other decorative items to an advantage. The suites are very
spacious and the other rooms are not that bad considering they can accommodate
the desk, one chair and the other necessities. The only thing that would receive a 7
in this would be the temperature control – all rooms have air conditioners – but they
make a lot of noise and are a little obstructive as well.

The Bathrooms: These have more or less the same sub-parts as the above. Tiles
and flooring are well fitted. The fixtures in the bathrooms are in good order, no
stains or signs of damage anywhere. Every room has either a bath or a shower – all
well taken care of. Each room gets two big towels, and two hand towels. Bath robes
are only provided for the suites. Guests have to ask for shower caps, but they are
available. Every bathroom has one bottle of shampoo, conditioner, body lotion, and
face wash; along with soap. No toothbrushes or toothpaste. The toilet paper is of
good quality. Towels are changed every day or according to guests preferences.
There are heated towel racks as well. Looking at size – every bathroom is according
to the room – but none are too small or compact; enough space for two people
together (which is a good thing.) Windows and blinds comprise of the ventilation.
This department could score an 8 or half more.

Public Areas: All the other areas inside the building which are accessible to guests
are evaluated under this section – corridors, conference rooms, public toilets,
reception, the lounge area. The décor is in perfect co-ordination with its theme. The
Hotel has a comfortable and relaxed feel. Furniture is in good condition. No
immediate signs of wear and tear. One thing that one could complain of is that
there are only two bathrooms – one male and one female. But on the other hand
they also have a bathroom for the invalid. This area would score an overall 8.

Dining Facilities: The restaurant is in theme with the rest of the hotel. Overall
experience is a good one. Though there are a few hang ups. The first would be that
it cannot seat more than 40 people and even that would be a bit of a squeeze. The
bar and the restaurant share the same space; which makes it a little noisy at times.
They do not have a very professional presentation when it comes to setting the
table and so on; don’t really use crystal or silver cutlery and crockery and the things
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that they do use have seen better days. But on the other hand the ambience is
perfect, the menu is presented in a very informative and profession manner with
the wine list being quite descriptive.

Food and Beverage (Presentation, Quality): In terms of quality, this department

would score a 9 – Fresh ingredients, an interesting style and a balanced menu with
constant innovations. The presentation is good as well, but could be improved.

Services and Service (check –in/check out, porters, room service, information): The
services provided at My Pond are actually very good. The employees are friendly
and helpful. Every room has an information pamphlet. The lounge area has
pamphlets of all the interesting tourist spots. The porters are smart and ready to
help; though they also act as odd job men so are not always prompt. Room service
can take a little longer than necessary at times. But overall, what the employees
lack in skill they make up in effort and make sure that the guest is comfortable. This
department would probably score an overall 9.

Housekeeping: This is the best department in the whole hotel. The employees are
efficient. Rooms are always cleaned on time. Public areas are tidy and swept
throughout the day. The Public Bathrooms are checked on at an interval of an hour.
Staff are well dressed – one does not really see them work; it’s like magic. This
department would score a 9.

An important thing that one needs to keep in mind is that a star grading should be
ideally done by a highly experienced individual. This is just an overview of some of
the things that are looked at while grading a hotel.

FACILITIES

My Pond Hotel is a very comfortably decorated first class hotel. It has 17 rooms in
total. One may order drinks in the room or in the lounge area. One does not need to
walk more than one flight of stairs to reach to the rooms. The Hotel offers laundry
service to its guests. There is wheelchair access as well. All the rooms have
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temperature control units. The rooms have a bathroom with a private shower and
toilet, hairdryers, writing pads. Every room has an arm chair; the suites having more
than one; desks and a chair. The rooms have LCD screen televisions that have 5
channels on them. An I-pod Charger is attached in most of the rooms Extra sockets
to power laptops or other appliances. The hotel is WiFi connected. The password is
given upon request. The curtains and blinds make sure that the sunlight is blocked.
There are safes in every room where guests can store their valuables. The rooms
have storage/luggage space and a fridge. They also have tea, coffee and a water
heater/kettle in the rooms. Room service is available to the guests till 11 p.m. Apart
from these basic things that make up a four star hotel.

My Pond also offers conference facilities. The conference room can seat a maximum
of 60 people. It consists of a Lapel mic, a 51 inch plasma screen, surround sound,
lights, DVD, DSTV HD Television. The conference room has its own separate
bathrooms. This is not only used for business purposes; guests may come and
watch a game of rugby if they choose. The hotel organizes wedding parties in the
conference room as well.

The hotel has a small swimming pool; which is heated by the geothermal unit.

The hotel has a spa and gym – but these are outsourced. It is on the property itself.
Guests may avail these facilities if they choose.

My Pond Hotel has a banqueting facility. The restaurant “Etare”; handles all of the
F&B for the hotel. The bar is part of the restaurant as well. This is visited not only by
the in-house guests but others as well. Both the restaurant and the conference are
connected through a small garden – “Tea Garden”; where guests like to relax; and
they open out to the Kowie River. The Hotel has made seating arrangements
outside and thus one can sit and contemplate on life while having a drink by the
river.

MARKET SEGMENTATION
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Market segmentation involves dividing customers into groups (market segments)

with common characteristics. There are a few methods through which one may
differentiate between the types of market that a hotel is catering to.

On the basis of Geographic Segmentation – My Pond is more focused on regional

and national guests. The main reason for that being that South Africa is not that
large a country and there are always people travelling through. It could be for
business or pleasure. The Eastern Cape has a lot to offer. Not that there are no
international tourists, but the main focus of the hotel is on the many local and
national guests.

On the basis of Demographic Segmentation – My Pond caters to the upper middle

and business class people. Port Alfred being a small quiet town; it usually has a lot
of the older generation coming in, which My Pond makes sure to accommodate.

Based on Psychographic Segmentation – As stated earlier the customers My Pond

attracts have the money to spend and are educated enough to appreciate the level
of service they get. They don’t mind asking for what they want and expect it. My
Pond is for the people and businesses that are environmentally conscious and want
to make a difference in their own little way. It is a green hotel after all.

Based on Behavioral Segmentation – The hotel wants people to come and celebrate
birthdays, anniversaries, weddings; celebrate life! It is not only focused on
conventions or travelling businessmen but also a way in which a family may bond.

RATES
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Every hotel charges different rates for the services they offer. Not all the rooms are
charged the same. There may be concessions for groups or even at the managers’
discretion. There are various components to keep in mind while deciding the rate –
depending on whether it is peak season; situation of the market – like the recession;
a lot of hotels have had to cut down due to this; star rating of the hotel and so on.
Having different rates, and in the event of less rooms being sold; makes a
difference overall as through this the hotel opens up its potential customers and
does not restrict itself to just one market segment.

The Rates decided by My Pond Hotel are as follows:

Room Rates: There are 10 standard rooms and 7 suites. All are charged differently.
Off season or the rack rate is applicable from the 15th of January till the 15th of
December. High Season or Peak rate is applicable from the 15th of December till the
15th of January. At this time there are no discounts on rooms at all.

Private Conference: For conferences which may or may not have guests staying at
the hotel. This could even be a full day long conference or half a day. Prices also
depend on whether it is in the afternoon or in the evening, as well as on what
package the organizers decide to opt for.

Group Rates: This is for big groups that stay at the hotel; usually together and for
the same reason. These rates are negotiated with travel agents and are upto the
hotel’s discretion. These rates also depend on the duration of the stay.

Corporate rates: These are for businessmen that travel through at various times of
the year. The company may have an agreement with the hotel regarding this,
though if the hotel considers them important they usually give them a different
rate. Also, since My Pond has KFC stock owners as some of its investors –
businessmen coming through to check and handle KFC get different rates at the
hotel which again is a private agreement.

Packages: There are different packages available at My Pond – some of them being
a Honeymoon package, and a golfing getaway. These are more like group rates in
principal, but don’t really depend on the travel agencies.
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Functions and Events: For weddings, fashion shows and other functions; My Pond
offers a variety of rates depending on the customers’ budget and preference.

The rates that the hotel offers are well suited to the services provided. One major
thing to keep in mind is that sometimes for frequent customers and if it is not the
peak season – the manager does tend to upgrade the rooms and offer a few
complimentary treats. Though, to reiterate that is at the managers’ discretion.

UNIQUE SELLING POINTS OF MY POND HOTEL

Go Green! – My Pond is a Green Hotel. This is one of the most important Unique
Selling Point’s (USP’s) of the hotel. It very proudly advertises this and the staff at
the hotel are keen to explain the workings of the hotel – whether to guests or just
the curious. The business cards, invoices, writing pads and other correspondence
are printed on Reviva Plus; which is a 100% recycled paper. The laundry bags are
made from calico; which is 100% natural cotton that is a renewable and recyclable
resource. My Pond uses geothermal energy – heat energy from the Earth – for
central heating and cooling as well as water and pool heating purposes. During the
heating cycle, a Water Furnace geothermal system uses the earth loop to extract
heat from the ground. As the system pulls heat from the loop it distributes it
through a conventional duct system as warm air. The same heat energy can also be
used for a radiant floor system or domestic hot water heating. In the cooling
process; this system is just reversed. Instead of extracting heat from the ground, it
is just extracted from the room and either moved back into the earth loop or used
to preheat water in the hot water tank. Due to this system there is no emittance of
carbon monoxide or other greenhouse gases (which contribute majorly towards
environmental pollution). This is a very interesting concept and as of now it
provides about 75% of the heating of the hotel. For the environmentally conscious
people and organizations of today’s age; this makes a very big impact while
choosing a hotel. Also, this is the only hotel in the area that uses this system which
gives it an edge over its competition
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Service – One of the other USP’s of the hotel is it’s personalized service. The staff
and the service provided at the hotel are very good. My Pond Hotel makes the
guests feel comfortable; the staff are always there to assist patrons. The ambience
at the hotel is very calm and serene. The Hotel targets not only its corporate clients;
but wants to be known as the place where one can bring the family as well – a mix
of business and pleasure. For example: When a guest comes for a convention; his
family can stay at the hotel as well; day care facilities are provided, the spouse can
do other things and basically it is a place where everyone is welcome and
appreciated.

Location – My Pond is located strategically at the centre of town. One of the factors
that makes it more appealing is the fact that it is right on the Kowie River. The
suites face the river and have a beautiful view, guests may sit and have a drink or
their meal sitting by the river on wooden benches. There is something about
humans and the elements of nature – it is always a treat to be able to feel at peace
and one with nature.

Star Rating – My Pond Hotel is the only 4 star hotel in Port Alfred, the other being
Fish River Sun; which is not exactly in town as such. Having a four star rating is not
a small achievement; apart from someone coming and rating the hotel, feedback of
guests is also something that is considered. The other thing being that My Pond
needs to constantly strive to keep its service and facilities upto the mark so that it
may stay at that level. There are many people who give star ratings a lot of
importance and this is where My Pond can shine.

One can consider the above as the USP’s (Unique Selling Points) of the hotel as they
are definitely unique – being the only place that uses geothermal energy, the only
four star hotel as well as having an interesting location and excellent staff; and they
are part of the main criteria that one would look at while deciding on
accommodation. This overall package of My Pond makes it very appealing to
prospective guests and patrons.
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HOUSEKEEPING

The housekeeping department of My Pond Hotel is in charge of cleaning all the 17

rooms (10 standard rooms and 7 suites); the lobby area, the staircase, the
reception area, the toilets and the conference area. The restaurant and the kitchen
areas are part of the Food and Beverage department.

If My Pond Hotel is 80% occupied, one may assume that 14 rooms are in use. At the
moment, there are 3 ladies and the Executive Housekeeper that work full time and
six days a week. One can safely say that this is more than enough, since it is not a
very large hotel. But, to be on the safer side – 2 more part time employees should
be considered so that during the days when the ladies are not able to come or need
time off – there isn’t too much stress on the rest.

The roster in the next page consists of a table, which has the employees and the
days of the week. The one thing that is interesting to note is that since the ladies
work 6 days a week, they would rather work a few days more and get 2 consecutive
days off instead of random days. The roster shows that the days when the
Executive Housekeeper is off, the second in charge is working so that she can
oversee the rest. Once in two weeks every employee gets two consecutive days off
to keep morale high.

The reason that Mondays and Fridays show more ladies working than the rest is that
the Spring Cleaning is done then and it is important to have as many hands as
possible on those days. Also, the part time employees are the ones who are still
new, not employed on a contract, could also be students doing internships at the
hotel, and are not part of the fixed staff. They work less hours than the regular staff
and are sometimes are called when extra help is needed as well.
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The Hotel does not have any housekeeping staff working night shifts. This is usually
handled by the night porter. Since the bar is closed after 11 p.m. and the restaurant
closes by 10 p.m. the waiters take care of room service till then. But most of the
duties, as stated earlier, are done by the night porter; till the housekeeping staff
arrive; which is at 7 a.m.

HOUSEKEEPING SCHEDULE: WEEK 1

POSITION/
MONDAY TUESDAY WEDNESDAY THURSDAYFRIDAY SATURDAYSUNDAY
PERSON
Executive
OFF
Housekeeper
Lady 1/
OFF
In charge
Lady 2 OFF

Lady 3 OFF

Part time:1 OFF OFF OFF Half Day OFF

Part time:2 OFF OFF OFF Half Day OFF

HOUSEKEEPING SCHEDULE: WEEK 2

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CLEANING PLAN
POSITION/
MONDAY TUESDAY WEDNESDAY THURSDAYFRIDAY SATURDAYSUNDAY
PERSON
Executive
OFF
Housekeeper
Lady 1/
OFF OFF
In charge
Lady 2 OFF OFF

Lady 3 OFF

Part time:1 OFF Half Day OFF OFF

Part time:2 OFF Half Day OFF OFF

My Pond Hotel outsources its laundry so the housekeeping department does not have that
responsibility. There are 3 full time ladies along with 2 part time workers and the
Executive Housekeeper.

Taking into consideration that each employee cleans 6 rooms in a day; takes an average
of 45 minutes to clean a room (the standard rooms being less time consuming) and there
being 3 ladies on duty on an average day. The day begins at 7 a.m. and goes on till 4 p.m.
The table below gives a brief overview of the time scale.

TIMES STAFF AREA TIMESCALE

Lobby, Staircase, Hallways,

7 am to 9 am 3 ladies Reception, 2 hours

(All Public areas)

9 am to 2 pm 17 Rooms 45 minutes per room

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2pm to 4 pm Public Areas, toilets, conference room

2 hours

A lot of people consider the best and optimal working department of My Pond Hotel as the
Housekeeping Department.

Spring Cleaning is done every Monday or a Friday – depending on how much time is
available. This means that all the windows are washed, the fridge in the room is moved
and dusted, the wooden floors are polished, the staircase and other fittings are polished as
well. The windows at the Entrance of the hotel are cleaned, as well as in the conference
room. Stock check for guest room amenities is done every Monday. Mondays are usually
better as people usually check out by then and there is adequate time to do a thorough
cleaning of all the rooms and areas.

The day starts with the employees cleaning all the public areas of the hotel – vacuuming
and mopping. The ladies work from 7 a.m. till 4 p.m. – it is a 9 hour shift in which they get
a 15 minute break for coffee and a 45 minute lunch break. One needs to keep in mind that
the break timings can change if the work is not completed on time and if there are any
other unforeseen circumstances.

The rooms are cleaned every day. If a guest stays in a room for more than 2 days – then
their linen is changed. Mattresses are turned once a month. Each mattress is dated and
marked so that one may check whether it has been turned or not. The old mattresses are
either sold or used to discount new ones.

The lobby is checked in the morning as well as the afternoon and cleaned – sometimes is
done thrice in a day; if it’s raining.

The Executive Housekeeper does her rounds to check whether the rooms are cleaned well
and if anything is missing. Also, at the end of the day – the rooms that are to receive
guests are prepared accordingly; with weather cards and any other special orders.

The cleaning products that are used are as follows:

• For the Windows – WindowKleen

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• Toilet Cleaner – Kleer Bowl Floor,

• Bath and Wall cleaner – Geo Solve Universal Cleaner
• Floor wax – vinegar and water (shine)

LINEN CONTROL

Linen is changed in guest rooms if they stay for more than two days; or if specifically
asked. The hand towels are sent for laundry every day. The main factors that influence the
frequency of linen is the arrival and departure of guests.

One par of linen equals to the total number of each type of linen that is needed to outfit all
guestrooms at one time. There are three things that need to be kept in mind while
establishing a par number for linens:

• Laundry cycle – internal or external

• Replacement linens of re-wash, damaged, lost or stolen linen – 10%
Emergency situations

For example: the total number of mattress covers that My Pond Hotel needs so that all the
guest rooms are in order: 22

One par in guest rooms = 1*22 = 22

One par in linen closet = 1*22 = 22

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One par in laundry = 1*22 = 22

One par in replacement = 1*22 = 22

Total number: 88 covers/22 covers/par = 4 par.

Total number of Bed Covers: 88/22 = 4par

Total number of Bed Sheets: 88/22 = 4par

Total number of Duvet Covers: 88/22 = 4par

Total number of Hand Towels: 592 /148 = 4 par.

Total number of bath mats: 68 /17 = 4 par.

Total number of Towels: 136/34 = 4 par

Total number of Pillow Cases: 408/102 = 4 par

LABOUR CONTRACTS

There are two basic types of contracts – indefinite and fixed term contracts.

Indefinite contracts – Most employment contracts are indefinite contracts. This

means that when a worker starts working for the employer, no-one knows when the
contract will end. An indefinite contract can only be ended in the following ways:

• by dismissal
• by cancellation of the contract by the worker or the organization.

Fixed-term contracts – If the worker and the employer both agree at the start of the
contract when that contract is going to end, then it is a fixed-term contract.

This type of contract is usually applicable to seasonal and contract workers. Though
there are many employees who take advantage of this contract purely as a means
of evading their statutory obligations in terms of the BCEA and the LRA (The Labor
Relations Act) and the EEA (Employment Equity Act), and also to save money by
 19

denying the employee the opportunity of pension/provident fund benefits and also
medical aid benefits.

Labour Relations Act (LRA) - The Labour Relations Act applies to all employers,
workers, trade unions and employers' organisations, but does not apply to -
members of the National Defence Force; National Intelligence Agency; or South
African Secret Service. The Act aims to advance economic development, social
justice, labour peace and democracy in the workplace.

The Employment Equity Act (EEA) - The Employment Equity Act is set down to
create equal opportunity and fair treatment in the workplace. In doing so, previous
disadvantage is redressed and unfair discrimination removed.

When starting the Rooms Division Department in a hotel; the higher positions –
Rooms Division Manager, Executive Houskeeper and Front Office Manager – should
ideally be on an Indefinite Contract.

The room attendants may be sourced through an agency, or hired based on

recommendations; and would require a fixed contract. After the first term is over
and if the employees are needed by the organization they may then put them on an
Indefinite Contract. Keeping them on a fixed contract at the beginning is a good
idea – since it is a new department and one cannot really judge the employees. It is
a better option as the management need not pay any benefits through this
contract.

Hotels usually follow the Basic Conditions of Employment Act (BCEA) on work
conditions. This Act states that anyone who works for an employer - whether they
are full-time, contractors or temporary workers - must receive a document
containing certain information regarding the conditions of their employment.

A contract can take the form of a letter of appointment or one can create something
more formal and suited to the business. Information that must appear in an
employment contract includes:

Employer and worker Details

• Employer's full name
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• Employer's address
• Worker's name
• Worker's occupation, or a brief description of the work

Employment details
• Place of work
• Date of employment
• Working hours and days of work

Payment details
• Salary or wage, or the rate and method of calculating wages
• Rate for overtime
• Any other cash payments
• Any payments in kind and their value
• Frequency of payment
• Any deductions

Leave
• Any leave to which the worker is entitled.

Notice/contract period
• Period of notice required for termination or
• Period of contract

The employment document needs to be updated and a new copy needs to be given
to the employees when:
• The law changes
• The employer and the employee agree to changes in the terms and
conditions
• The employee's pay or benefits are increased. In this regards, one can simply
add a supplementary letter to the original contract
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ACTS THAT APPLY TO THE HOSPITALITY INDUSTRY

Occupational Health and Safety Act – The Occupational Health and Safety Act aims
to provide for the health and safety of persons at work and for the health and safety
of persons in connection with the activities of persons at work and to establish an
advisory council for occupational health and safety.

• 5 employees or more = First Aid Box

• 10 employees or more = Qualified First aider
• 20 or more employees = One health and safety representative

Compensation for Occupational Injuries and Deceases Act – This act deals with
injuries, disablement, disease and death caused by work-related activities. It applies
to all employers, casual and full-time workers who, as a result of a workplace
accident or work-related disease, are injured, disabled, killed or become ill.

Employment Equity Act – This Act aims to promote and achieve equity in the
workplace, by encouraging equal opportunity among all workers. The provisions for
affirmative action apply to:

• Employers with 50 or more workers, or whose annual income is more than a

certain amount.
• Municipalities
• Organs of State
• Employers ordered to comply by a bargaining council agreement
• Any employers who volunteer to comply

The Sectoral Determination for the Hospitality Industry – The Sectoral Determination
also looks after the rights of employees in the hospitality industry with regards to
minimum wage, for example.
 22

Where more than 10 employees are employed, the minimum wage is R1650 per
month (R380-80 per week). The parties may, however, enter into a written
agreement that the employee be paid an hourly rate. The parties may also agree in
writing that the employee be paid on a commission basis, but the employer may not
pay the employee less than the prescribed minimum wage for the period worked.

THE TOBACCO PRODUCTS CONTROL AMENDMENT BILL

2006 (SECTION 2):

• Increases the fine for the owner/manager of a public place who allows
smoking in a prohibited area.

• Adds a penalty for an individual who smokes in a public place.

• Prohibits smoking in private dwellings if they are used for commercial

childcare activities.

• Prohibits smoking within a prescribed distance of the entrance to a public

place.

• Prohibits anyone under the age of 18 from being present in an area where
smoking is permitted.

• Regulates smoking in specified outdoor areas

• Protects workers from exposure to tobacco smoke pollution.

• The maximum fine for owners of public venues who don’t follow the letter of
the law – and that includes posting clear signs indicating smoking areas –
goes up from R200, to R50 000.

• Employers who flout the law can be fined R100 000.

 23

In adherence to the Amendment of Section 2 of Act 83; My Pond Hotel has a specific
area allocated for smoking. Smoking is prohibited inside the building (no smoking in
the rooms). The tea garden and the outside of the hotel are the areas where one
may smoke. These are uncovered and out in the open. They constitute of less than
25% of the total floor space (according to the Bill). There are signs inside the
building which clearly state that it is a non-smoking zone.

NO. 59 OF 2003: LIQUOR ACT, 2003

The Liquor Act applies to all manufacturing or distribution of liquor or methylated

spirits, and to the regulation of impotable (undrinkable) substances.

Hotel liquor licenses are obtained for the sale of liquor for consumption on licensed
premises

Applications for this licence must be directed to the provincial liquor board, which
must consider the application. A plan of the premises on which the liquor will be
sold if the licence is granted must be sent in with the application. The board may
refuse or grant the application.

The following people may not be granted a liquor licence at all:

• Persons (or their spouses) who were sentenced less than 10 years earlier to
imprisonment without the option of a fine, unless the offence does not imply
unsuitability to hold a liquor licence, or the sentence has been set aside by a
court, or the applicant has been granted amnesty or a free pardon;
• Certain persons (or their spouses) who less than 10 years earlier have twice
been convicted of liquor offences;
• Unrehabilitated insolvents or their spouses;
• Persons who are minors when the application is being considered.

Moreover, if one of these persons has a controlling interest in a company, a trust, or

is a partner in a partnership, or is the main beneficiary under a trust, the company,
 24

close corporation, trust or partnership concerned may also not be granted a liquor
licence.

A licence granted by the board will specify the type of liquor that may be sold; it
may also be subject to conditions imposed by the board in its discretion, including a
condition that liquor may not be supplied on a certain part of the licensed premises.
Liquor may not falsely be described as being of a particular kind or brand or as
being of a specific person's manufacture.

The licence must be renewed each year on payment in advance (by 31 December of
the previous year), of the prescribed fee. If this fee is not paid for the next year, the
licence lapses on 31 December. However, the licence again becomes valid, from the
date on which it lapsed, if the fees plus a 50 per cent surcharge are paid not later
than 31 January of the year to which the fees relate, or if the fees as well as a
surcharge of 100 per cent are paid not later than 28 February of that year.

The board may suspend or withdraw a licence to operate a bar in response to a

complaint or objection to a licence by a person ordinarily resident in the district in
which the bar is situated or by another licensee who carries on business in the same
district.

The holder of every licence for the consumption of liquor on the licensed premises
(known as an 'on-consumption licence') must ensure that liquor sold is consumed on
the licensed premises. Holders of hotel liquor licences must at all times have wine,
brandy and beer available for sale to the public in reasonable quantities.

When granting a licence, the board or a magistrate may subject different parts of
licensed premises to restrictions as to what drinks can be served there. For
instance, spirits may have to be served in a bar but may not be served in an
adjoining open-air beer garden.

Hotels may, however, sell liquor to their guests on any “closed days” (Sundays,
Christmas), except in restricted parts of the premises. Persons who are not lodgers
at the hotel may also be supplied with liquor on those days, but only if the liquor is
supplied outside a restricted part of the premises and together with a meal
 25

purchased on the premises for consumption with, immediately before, or

immediately after the liquor.

On days other than closed days, hotel lodgers or their guests may be supplied with
liquor at any time, but the holder of a hotel liquor licence may sell liquor to other
persons only between 10am and 2am of the following day. Meals must be available
and regularly served.

BIBLIOGRAPHY

• Tourism Grading Council of South Africa - http://www.stargradingsa.co.za/?

Task=system&CategoryID=24393&HeadingText=Star+Grading+Criteria+
%26+Min.+Reqs.
• Marketing for Hospitality and Tourism, 3e - Philip Kotler, John Bowen, James
Makens (©2003 Pearson Education, Inc.)
• http://hotel-industry.learnhub.com/lesson/8842-classification-of-hotels
• http://www.expresshospitality.com/20050627/spotlight01.shtml
• http://www.tourismgrading.co.za/default.aspx?pid=31&stepid=1&oid=70
• http://www.hotels.nl/starinfo.html
• http://www.mypondhotel.com/downloads/mypond_conference_guide.pdf
• http://business.learnhub.com/lesson/2910-business-basics-6b-market-
determination
• http://www.hotel-online.com/Trends/Payne/Articles/Lets_Put.htm
• http://www.mypondhotel.com/downloads/mypond_offering.pdf
• http://www.mywage.co.za/main/women-and-work/hotel-housekeeper
• http://www.labourguide.co.za/contracts_of_employment.htm
• http://www.labourguide.co.za/fixed_term_contract.htm
• http://www.contracts-managements.com/contract-types.php
• http://www.paralegaladvice.org.za/docs/chap08/02.html
• http://www.capegateway.gov.za/eng/pubs/guides/G/92867/7
• http://www.capegateway.gov.za/eng/pubs/guides/G/92867/8
• http://southafrica.smetoolkit.org/sa/en/content/en/5331/The-employment-
contract
 26

• http://southafrica.smetoolkit.org/sa/en/content/en/4135/Compliance-in-the-
hospitality-industry
• http://www.health24.com/medical/Condition_centres/777-792-1952-
1978,40489.asp
• http://www.doh.gov.za/docs/bills/tpcab.pdf
• http://www.doh.gov.za/docs/bills/tobacco2.pdf
• http://www.capegateway.gov.za/eng/pubs/acts/prov/2003/86046
• http://www.legalcity.net/Index.cfm?
fuseaction=RIGHTS.article&ArticleID=2507744