CHONEY ZANGMO
Thimphu
The Ministry of Industry, Commerce, and Employment (MoICE) has announced a series of measures aimed at addressing the growing concerns of employees in the hospitality and retail sectors regarding public holiday disparities. Workers in these industries have long voiced grievances over the perceived imbalance in holiday provisions compared to those in government and other private sector jobs. Given the long working hours and demanding nature of their roles, many employees feel undervalued and undercompensated.
During the meet the press session on 4 March, the Minister for MoICE Namgay Dorji said that all appropriate measures are put in place to regulate the issues with regard to the concerns of the employees.
The issue gained attention following a comprehensive assessment conducted by the Department of Labour in 2023, which involved 423 employees and 111 employers from the hospitality sector. The highlighted signicant inconsistencies in public holiday entitlements, with 44% of employees reporting that they did not receive public holidays at all. Although 76% of employees were offered substitute days o, only 5% received monetary compensation for working on designated public holidays, as mandated by the Labour and Employment Act of Bhutan 2007. Additionally, the study revealed that 33% of employees worked beyond standard hours, while a considerable portion remained unaware of their leave rights, with only 55% of those entitled to leave fully informed about the benefits.
The findings underscored the urgent need for a more structured and enforceable approach to ensure fair holiday compensation and leave policies for workers in the service sector. In response, the MoICE, through the Department of Labour, has reinforced its interventions to bridge these gaps and strengthen the enforcement of labor laws.
One of the key measures being implemented is enhanced compliance monitoring, where the Ministry has ramped up risk-based inspections to ensure employers adhere to the Labour and Employment Act. Employers found violating regulations related to public holiday provisions, overtime, and leave entitlements will face penalties under the law. This step aims to create a more accountable system where businesses prioritize employee welfare while maintaining operational efficiency. To further empower employees and provide a safe avenue for reporting workplace grievances, the government has introduced an anonymous reporting mechanism. Through the Online Labour Administration System, workers can now confidentially report unfair holiday practices and other labor law violations without fear of retaliation. The Ministry hopes that this will encourage more employees to come forward and hold employers accountable for any discrepancies in holiday entitlements and compensation.
In addition to strengthening legal enforcement, the Department of Labour is actively working to improve awareness and education regarding employee rights. In collaboration with industry associations, the government is rolling out targeted awareness programs to ensure that both employers and employees fully understand their legal obligations and entitlements under the Labour and Employment Act. By fostering a culture of transparency and accountability, the Ministry aims to minimize exploitation and ensure workers receive the benefits they are entitled to. Recognizing the operational challenges that hospitality and retail businesses face, particularly during peak seasons, the government is also encouraging flexible compensation practices. Businesses are advised to implement compensatory leave arrangements, allowing employees who work on public holidays to take time o during o-peak periods. Additionally, the Ministry is urging employers to consider alternative benefits such as bonuses or increased hourly wages during busy seasons to fairly compensate employees for their extra efforts. These flexible models aim to strike a balance between employee well-being and business sustainability, ensuring that workers are not unfairly burdened while enabling businesses to operate smoothly. The Ministry of Industry, Commerce, and Employment has rearmed its commitment to protecting workers’ rights while fostering a fair and competitive business environment.
“Our goal is to ensure that no employee feels undervalued, particularly in sectors that play such a vital role in our economy,” the Minister stated. The hospitality and retail sectors are crucial contributors to Bhutan’s economy, and ensuring fair labor practices will not only improve employee satisfaction but also enhance productivity and service quality in these industries. With these measures in place, the government hopes to create a more equitable system where workers in the service sector receive the recognition and compensation they deserve for their dedication and hard work. As the Ministry continues to monitor progress, it remains open to further discussions with industry stakeholders to refine policies and address emerging concerns in the labor market.
