(1) An employer may, under an agreement, give to an employee as partial payment of remuneration, other than wages, allowances in kind which shall—
(a) be of personal benefit to the employee and his or her family and be appropriate for the use of the employee and his or her family;
(b) be of fair and reasonable value appropriate to the monetary value placed on the allowance by the employer;
(c) not be in the form of intoxicating liquor, tobacco, cigarettes, noxious drug or substance, or weapons and where such partial payment of such allowances in kind is customary or desirable in the particular industry or occupation concerned.
(2) The allowances in kind permitted under subsection (1), shall not exceed in its cash value one third of the employee's regular wages in respect of a completed pay period.
(3) The question of whether or not the partial payment of remuneration, other than wages, as allowances in kind falls within the meaning of subsection (1), shall be decided by the Labour Commissioner on the application of an employee, and the Labour Commissioner's decision shall be final.