Distribution of service charges

(1) Any service charges collected or received by a proprietor or employer from guests or customers shall be distributed among employees in accordance with the provisions of a scheme prescribed or registered under the provisions of this section, and in the absence of any such scheme, by agreement with the employees. (2) The Registrar may by regulations prescribe a formula to be used by all proprietors or employers, or all proprietors and employers of a certain class, for determining the distribution of service charges among employees. (3) Where no regulations have been made in respect of any given proprietor or employer, or any class of proprietors or employers, the Registrar may by agreement with that proprietor or employer, or class of proprietors or employers, register a formula to be used by that proprietor or employer, or class of 19 proprietors or employers, for determining the distribution of service charges among employees. (4) Any proprietor or employer who fails to comply with a formula imposed upon him by regulations made under subsection (2) or by registration under sub-section (3) commits an offence. (5) All service charges referred to in this section shall be distributed within three weeks of the end of the calendar month in which they were collected or received. (6) Any proprietor or employer who fails to comply with sub-section (5) commits an offence. (7) All proprietors or employers in any hotel or tourist accommodation, undertaking, trade or business where service charges to which this section applies are regularly received or collected from guests or customers shall keep accounts recording all such service charges received or collected, and the manner in which they were distributed. (8) Without prejudice to any other powers, the Registrar may upon demand inspect any accounts kept pursuant to sub- section (7). (9) Any proprietor or employer who fails to keep the accounts required under sub-section (7) or who does not permit the Registrar to inspect them upon demand pursuant to sub- section (8) commits an offence. (10) Every person who commits an offence against this section or any regulations made thereunder shall be liable to the same penalties as prescribed in section 27(1). 20 17 Payment of charges by guests shall be in conformity with any law dealing with currency or exchange control or any instrument or document by whatever name or designation called, issued thereunder.