I wonder though what a labor court would say about that.
The hostel was providing dorm accommodation for employees, so it just involved moving the employee to the weird guest's room.
At the time I was working for a competing hostel and the owner didn't have any rules like that. If we would throw a problem guest out, the owner was likely to hire him as an employee the next day :confused:
(That hostel experience was one of the inspirations for creating HostelManagement.com.)