Section 42Part 5 — GRATUITIES
Actual distribution of gratuity
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A service employer to whom section 37 (1) applies shall, within the first ten days of a month, according to his Plan for Distribution of Gratuities, distribute to his service employees all gratuities collected by him or on his behalf during the previous month.
With each monthly distribution of gratuities required by subsection (1), the employer shall furnish the employee with a Gratuity-Distribution Statement in Form 8 of the Schedule, and the employer shall keep a copy of the form for three years.
A service employer who fails to furnish a Gratuity-Distribution Statement referred to in subsection (2) shall be guilty of an offence.
A service employer who contravenes subsection (1) is guilty of an offence and liable on conviction to a fine of twenty-five thousand dollars or to imprisonment for twelve months, or both, and upon conviction the court shall order that the amount which was found not to have been paid to the employees shall be paid to those employees within seven days of the date of the conviction or such longer period as the court may order, and if the court does not so order, such order shall be deemed to have been made by virtue of the conviction.
For the avoidance of doubt it is declared that a service employee who ceases to be a service employee is entitled to participate in the distribution of all gratuities collected by his employer or former employer for the period of time that the service employee was employed in that undertaking.
A service employer who fails to furnish a Gratuity-Distribution Statement is guilty of an offence.
Defined Terms
service employerPlan for Distribution of Gratuitiesservice employeesgratuitiesGratuity-Distribution Statementservice employee
Cross References
- Section 37 of Employment Act
section 37 (1) applies