Suggest Better Canteen Sys For Employees

Dear Sir

Recently i had join a manuf unit in Maharashtra. There is a observation related to Canteen facility at Premises.This manuf unit is still under execution stage.Hardly there is a staff up to 50 on roll employees company was not provided canteen facility to present staff.

Employees whose are availing canteen food regularly runs canteen by collecting monthly subscription of total canteen expenses . To helping these staff org. provided

Canteen Room

utensil ,

Fule(LPG)

Canteen Cook

There is a identified charges sys is there as for regular member (Rs-20 and Visitor staff Rs 40/ Foe contractor Rs 50)

This canteen is used by other people also as Visitor/Contract employee food charges for then is collected after availing food by them. and here comes the problem as exp for regular member is collected at the beaning of the month to run the sys properly but due to certain no of visitor and contractor this extra exp is shared by regular member.

All the time canteen faces lacking of funds and lacking material at canteen for food preparation

We are trying to overcome this canteen problem by checking possibility to run this canteen through external contractor.

Please suggest any more option?

dear uday
as per my knowledge until and unless the number of employees are 150 there is no obligation for the company to provide canteen according to factories act 1948
so my suggestion is you first get clear idea about how much cost was incurring for running the canteen and also the contribution bared by each employee.
with all the details pre planned you can discuss the issue with your hr and can suggest for the management to hold a share of the burden the employees getting through canteen

It is not 150.Statutory obligation to run the canteen arises only if you are employing 250 or more workers in the factory.
Varghese Mathew
09961266966

Hi Varghese Mathew,
Thank you for your information. And plz make me clear, whether we can deduct the amount for the employees taking their food from the company canteen or the company have to bare the cost?????

Dear Uday

Instead of running the canteen by the internal staff and keeping the various rates, you can fix the rates at par with the Contractors. You can give the canteen contract to some external agency and fix the price and instruct them to run the canteen on the price. For Lunch and evening snacks alongwith 2 cups of coffee/tea, you can instruct the contractor give the bill details to your accounts department and they will make payment directly to the Canteen and the accounts department has to collect the cost from the employees after deducting the amount of subsidy whichever you are offering to the canteen.

If the bill for the employee comes around Rs.2000/- and the total bill amount comes around Rs.100000/-, then you will make payment of Rs.100000/- to the canteen contractor. But while collecting from the employees, you will deduct LPG Charges Rs.8000/-, Cook & Helper Salary Rs.22,000/-, and for the Balance amount of Rs.70000/- you can collect from your employees i.e., per head Rs, 1400/- per month. If the company is earning good profit then you can give canteen subsidy directly from your account and a nominal amount you can deduct from the employee for having food, evening snacks and tea.