(1) Where an employer to which this section applies -

(a) describes a charge (including a mandatory charge) imposed on a customer as a 'service charge', or any similar or cognate term, whether in a tips and gratuities notice or in any other medium, or

(b) in any other way leads customers to believe that a mandatory charge shall be distributed to employees,

the employer shall treat all payments, whether made by an electronic mode of payment or any other means, received from customers pursuant to such a charge as if any such payment was a tip or gratuity received by an electronic mode of payment.

(2) An employer who contravenes subsection (1) shall be guilty of an offence and shall be liable on summary conviction to a class C fine.