Section 35Part 4 — Gratuities
Minimum gratuity may be prescribed
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35. (1) The Cabinet may, by regulations, prescribe the minimum rate of gratuity that is to be shown or included in accounts rendered to customers of hotels, condominiums, restaurants, licensed premises or other places of entertainment: Provided that the Cabinet may, in writing, upon application of a specific business, exempt any specific business from the regulations made under subsection (1) where the employer does not collect or receive gratuities in respect of services provided by a business mentioned in this subsection.
Different minimum rates of gratuity may be prescribed for different types of businesses or different activities within a type of business. Labour Act (2021 Revision) Section 36 c Revised as at 31st December, 2020 Page 25
A person carrying on a business or an activity of a business in respect of which a minimum rate of gratuity has been prescribed in accordance with subsection (1) shall show or include in all accounts rendered to customers of the business a gratuity at a rate not less than that prescribed.
A person who contravenes subsection (3) commits an offence and is liable on conviction to a fine of ten thousand dollars.
The prescription of a minimum rate of gratuity in respect of a business or an activity carried on by a business, or the inclusion of a gratuity in an account rendered by a business does not imply a contractual obligation on the part of a customer of that business to pay any gratuity shown or included in an account rendered on behalf of the business.
Notwithstanding subsection (3), it is not an offence under that subsection for a business to state that a gratuity shown or included in an account rendered on behalf of the business is shown or included at the minimum rate recommended by the Government and that payment of the gratuity is discretionary.