Hospitality industry embraces informative FEDHASA Cape legislative seminar

FEDHASA Cape held an informative legislative seminar for its members at the Mother City’s Townhouse Hotel & Conference Centre on Wednesday 4 November. The Western Cape Liquor Amendment Act came under particular scrutiny, while clarification was gained on the new Tobacco Control Amendment Act and the Consumer Protection Act.  Also raised at the seminar was FEDHASA Cape’s submission to the Department of Labour of a formal proposal for the review process of the Hospitality Sectoral Determination 14 (SD14).

“The legislative seminar was very well received by our members as well as non-members who decided to come along,” says FEDHASA Cape Chairperson Phillip Couvaras.  “We sincerely hope that non-members who were present will now give serious consideration to joining our organisation, as legal advice and legislative seminars rate among our great many value adding services,” he says.

Tobacco Control legislation
“The Tobacco Control legislation is undoubtedly a good thing and is for the most part welcomed by the hospitality industry,” Couvaras notes.

However, according to Peter Cumberlege, legislative consultant for the organisation, legislation is at times drafted in such a way that it can cause confusion.  For example, the definition of a “public place” in the Tobacco Control Amendment Act has been extended to include partially enclosed areas but no definition for “partially enclosed” has been provided.

“We are waiting for the Regulations, as yet to be published, to define ‘partially enclosed,” says Cumberlege.

The Act also states that no person may smoke a tobacco product within a prescribed distance from doorways, windows and entrances to public places.  Without the Department providing the prescribed distance, it is all but impossible for the industry to comply.  However, there is no uncertainty about the fact that smoking is only allowed in designated smoking areas; tobacco products may not be sold to children under 18 years of age; children under 18 years of age may not sell tobacco products; an employer cannot force an employee to sign an indemnity clause and force him to work in a designated area for smokers; employers as well as owners are responsible for ensuring that smoking controls are enforced in public places; vending machines are only permitted in designated smoking areas; and parents cannot take their children under 18 into designated smoking areas.

Western Cape Liquor Amendment Act
On the issue of the Western Cape Liquor Amendment Act, which was gazetted for public comment last month and submissions due by the 24th November, Cumberlege says that there are a number of concerns not the least being the proposed trading hours for on consumption establishments from 11h00 until 02h00.  “What will happen with the mini bars in guest rooms? Will the licensee have to ensure that every mini bars is sealed at two in the morning?” Cumberlege says.  “This is clearly not the intention of the legislators, yet another example of how confusing legislation can be at times.”  The Western Cape Liquor Amendment Act also makes provision for local authorities to implement by-laws concerning trading hours over and above those provided by the Province.  A further concern, according to Cumberlege, is that the Act does not take into account the zoning difficulties being experienced by many existing licence holders as well as prospective licensees,  , including Shebeen owners wishing to make application for a liquor licence.

“They have been excluded from the public participation process and FEDHASA has raised its concern that they should be consulted and the zoning issue resolved”, comments Couvaras.

The Cape Town City Council, concerned about public disturbances in residential areas, has drafted a by-law that will prevent the consumption of liquor after 21h00 in certain areas.  “The Council should rather look to endorse the licenses of establishments guilty of causing noise pollution and charge the licensee.  The penalty could range from a reduction in trading hours to the permanent removal of the licence”.  The law should look to punish only those establishments guilty of an offence.

National Consumer Protection Act
Cumberlege also addressed some aspects of the National Consumer Protection Act which will come into effect in October 2010.  In terms of the hospitality industry, one of the more far-reaching impacts of the Act is the consumer’s right, under certain circumstances, to cancel advance bookings and orders.  For example, if a guest is involved in an accident en route to a pre-booked hotel, this could undoubtedly constitute grounds for cancellation.

However, if a caterer spends money preparing for a function and the event is cancelled without a reasonable cause, the caterer could be expected to retain a deposit or recover reasonable costs.  According to the Consumer Protection Act, all consumers have the right to information in plain and understandable language so that they fully understand all documents they are required to sign.

“Lawyers will have to get their head around drafting legal documents in understandable language,” says Cumberlege.

The onus is on the proprietor of an establishment to fully inform guests of potential risks. If an area is, for example, crime ridden, then visitors should be informed in order for them to take the necessary steps to protect their possessions.  Furthermore, the provision concerning vicarious liability will mean that the establishment is fully responsible for the actions of its employees.  If an employee is guilty of misconduct or unruly behaviour, the establishment can be held responsible for any injury or loss suffered.

Since its establishment in 1949, FEDHASA has become known as the lobbying body and watchdog for the Southern African hospitality industry locally, nationally and in all tiers of governments on tourism, legislation, trading conditions, taxation, education and related industry issues. The association services 5 segments, i.e. hotels, small accommodation, restaurants and catering, suppliers of products and services to the industry and now also a Youth segment.

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