Section 37Part 4 — Gratuities
All gratuities to be distributed
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37. (1) A service employer shall distribute all gratuities collected or received by that person amongst that person’s service employees twice monthly on the day that service employees’ wages or salaries are paid —
in accordance with a scheme approved by and registered with the Director; or
where no such scheme is registered, in accordance with a formula prescribed by the Cabinet by regulations.
A person who contravenes subsection (1) commits an offence and is liable on conviction to a fine of twenty-five thousand dollars and to imprisonment for twelve months, and the service employer shall be required to distribute the gratuity in respect of which that person was convicted amongst that person’s service employees within such period as the court may order. Section 38 Labour Act (2021 Revision) Page 26 Revised as at 31st December, 2020 c
A service employee is entitled to participate in the distribution of all gratuities collected or received by that person’s employer in respect of the premises at which the employee is employed for services provided after the date the employee became a service employee at those premises.
A person who ceases to be a service employee is entitled to participate in the distribution of all gratuities collected or received by that person’s employer or former employer in respect of the premises at which the employee was employed for services provided before the date the person ceased to be a service employee at those premises.