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Lead Story
Govt plans to bring hotels under Factories Act
Praveen K Singh - New Delhi
Hoteliers across the country have expressed dissatisfaction
over the government's intention to put hotels under the Factories Act 1948 through
an amendment. Hotels currently fall under the service sector and are governed
by a different set of rules and regulations. They are at present being administrated
under Shops & Establishments Act.
Expressing his viewpoint, executive director of EIH and president of FHRAI,
Dinesh Khanna said, "This move by the government will not be of any worth
as hotels fall under the service sector and are being governed by a different
set up rules and regulations."
Legal expert and senior counsel of the Supreme Court, Lalit
Bhasin, described the move as unsuitable. "Hotels work 24x7 and provide
several services to its guests. There is no manufacturing of goods; they are
just offering services," he added.
The Ministry of Labour, which has taken this task of bringing
hotels under the Factories Act, has already finalised the draft for the amendment,
and is expected to table it in front of the Cabinet soon. Feedback from the
industry is that the UPA government is being hard-pressed by Left parties to
implement this amendment.
| According to the Factories Act, a 'factory' means
any premises including the precincts thereof (i) whereon ten or more workers
are working, or were working on any day of the preceding twelve months,
and in any part of which a manufacturing process is being carried on with
the aid of power, or is ordinarily so carried on, or (ii) whereon twenty
or more workers are working, or were working on any day of the preceding
twelve months, and in any part of which a manufacturing process is being
carried on without the aid of power, or is ordinarily so carried on, but
does not include a mine subject to the operation of the Mines Act, 1952
(35 of 1952), or a mobile unit belonging to the armed forces of the union,
a railway running shed or a hotel, restaurant or eating place. |
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