(1) An employer to which this section applies shall, in a manner that is fair in the circumstances and in accordance with this Act, distribute to his or her employees any tips or gratuities received by the employer by an electronic mode of payment.

(2) Subject to subsection (3), an employer shall not retain any share of tips or gratuities received by the employer by an electronic mode of payment.

(3) An employer may only retain a share of tips or gratuities received by the employer by an electronic mode of payment -

(a) in so far as such retention is required or permitted by this Act, or

(b) where that employer -

(i) regularly performs, to a substantial degree, the same work performed by some or all of the employees, and

(ii) retains a share of tips or gratuities received by an electronic mode of payment that is no more than an amount that is fair and reasonable in the circumstances having regard to the amount of such work so performed by that employer.