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HRAB and labour department push for Internal Service Rules to fix hotel HR issues

July 29, 2025
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With staff quitting without notice and service quality falling, the hotel industry has been facing human resource challenges. And this is happening because many hotels lack Internal Service Rules. Officials said having such rules could help address these problems. To improve enforcement and awareness, the Hotel and Restaurant Association of Bhutan and the Department of Labour held a joint session yesterday in Paro.

During the session, some hotel managers shared that staff are leaving without notice, disrupting operations and straining teams.

Others blamed the absence of clear HR procedures for rising disputes and inconsistent disciplinary actions.

Some also highlighted a growing trend of hotels being used as informal “training grounds,” where new hires gain brief experience before moving on for slightly better paying jobs, often without any proper exit process.

Officials said such problem is more common in three-star hotels and below. Some employees said they are briefed about the Internal Service Rules while joining the hotel but in some cases, agreements are made verbally.

Leki Wangdi, a hotel manager said, “Without a clear service rule, we have no idea how long someone’s notice period should be or what they are entitled to throughout their employment. It creates confusion and uncertainty.”

To address these challenges, the Hotel and Restaurant Association of Bhutan and the Department of Labour is focusing on having Internal Service Rules for every hotel.

According to the Department of Labour, out of over 700 hotels and restaurants in the country, only around 300 have Internal Service Rules. This means more than half of the establishments are still non-compliant.

While the department has the authority to impose fines of up to Nu 30,000 for failing to implement the rules, officials said no penalties have been issued so far, as the focus remains on awareness and education.

Starting next month, they plan to visit all hotels and assist those without the rules to create one.

Kuenzang Thinley, the vice chairman of the Hotel and Restaurant Association of Bhutan said, “We have focused mainly on the Internal Service Rules because it is very important. This is because the internal service rules protect both the employee and the employer. This is a must. At the end of the day, if you have transparency the practice will go well.”

The participants were also trained on how to use the Bhutan Labour Market Information System, an official platform for managing Internal Service Rules submissions and labour compliance.

The organisers hope that with better understanding and access to digital tools, more hotels will not only meet the legal requirements but also improve workplace standards across the hospitality industry.

Karma Samten Wangda, Paro

Edited by Tshering Zam

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