The purpose of the statute is to regulate relations between employers and employees and provide for rights and responsibilities of both parties.
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Section 31(1) of the Act provides for housing rights for employees by providing that an employer shall always and at his own expense provide reasonable housing accommodation for each of its employees either at or near the place of employment or in the alternative, pay such sufficient sum as rent in addition to the wages or salary to enable the employee to obtain reasonable accommodation. This is the legal basis for payment of housing allowance to employees (at least for those who are not provided with housing). The Cabinet Secretary is however empowered to exclude the application of this section to a category of employees.
