Compliance…did I hear you groan?
I don’t know of any industry now that isn’t bogged down with excessive compliance.
I don’t know of any industry now that isn’t bogged down with excessive compliance. And Hospitality is no exception. Clubs, pubs and restaurants have an incredible amount of legislation, standards and industry requirements we all need to comply with to be able to trade unfettered and without being fined.
This is a topic I write about on a recurring basis as it is one of the key areas that changes and in many respects get harder and harder to manage. I worked in the Agricultural Chemicals industry for about 20 years and it is very highly regulated, due in no small part to the dangerous nature of poisonous, flammable, corrosive and explosive products. Legislation around how to store, transport and handle these dangerous goods places heavy responsibility on manufacturers, wholesalers, retailers and the end user – farmers and graziers. All in the name of personal and environmental harm minimisation. Sound familiar?
It is worth looking back on my Compliance article in December 2021, to see that not a lot has changed, but that additional imposts now exist. If you are a club or pub with gaming and wagering and in-house food, you have the full range of compliance issues:
- Responsible Service of Alcohol (RSA) under the Liquor Act
- Responsible Conduct/Service of Gaming (RCG/RSG) under the Gaming Machines Act
- Advanced RCG for Responsible Gambling Officers (venues with 21 or more electronic gaming machines [EGMs])
- Licensee/Advanced Licensee pending the risk level of your establishment
- Wagering compliance for TAB and Keno
- Permits for fundraising raffles/lotteries (whose value exceeds $5,000)
- Director Mandatory Training (in NSW) for roles and responsibilities and financial literacy
- Responsible Gambling Board Oversight (RGBO)
- Anti-Money Laundering / Counter Terrorism Financing Board Oversight AML/CTF
- Gaming Plan of Management (GPOM) if you have any poker machines
- Food Safety Supervisor (FSS) certified staff for food preparation
- Work, Health and Safety policy and procedure (including Bullying and Harassment Prevention)
- Anti-Discrimination Policy which extends now to diversity, equity and inclusion
For restaurants, just exclude the gaming and wagering issues, but if you are licensed, include the RSA aspects as well as the Food regulations. Large organisations, like large clubs and pub groups, generally have a Compliance Manager to oversee compliance and ensure the entity has everything in place. It is the smaller organisations, clubs, pubs and restaurants, that may operate with 20 or less staff (including the owner in the case of pubs and restaurants) that have limited resources to meet this compliance.
How best to address this challenge?
It is almost impossible for one head to wear so many different hats, and smart people know what they don’t know, and go to get help from those who do know what they need.
All the above issues relate to a combination of State and Commonwealth based legislation and part of your compliance is ensuring that your organisation’s constitution is aligned with the legislation. Small restaurant and pub owners may well say “Constitution, what constitution?” however as a sole trader or partnership, the legislation is the same, so whilst you may not have a Constitution, the legislative compliance means you really need to have all the right certifications, policies and procedures in place.
Apart from apps out there that help with your compliance, the best due diligence is to work with a consultant that is fully across all the legislation, policies, plans and procedures you require, to ensure you do not overlook any essential bits of legislation, that may result in costly fines.
At Extrapreneur Services we offer Governance Audits – from a desktop review for smaller organisations at minimal cost, to full blown, onsite audits of larger organisations with a complete review of all policies, plans and procedures. It may well be that your solutions lie with a readily available app, but more usually, if you don’t know what you need to comply, your organisation may be vulnerable and exposed to having breaches identified and then fines imposed.
We are also planning to deliver Governance Due Diligence Masterclasses around the state, at multiple locations, to assist directors, owners and managers of organisations of all sizes, to understand where their compliance may need attention.
If you would like to arrange a Governance Audit, or would like to host a Governance Due Diligence Masterclass at your venue, contact Ron Browne, Managing Consultant, ron@extrapreneurservices.com.au or 0414 633 423.
