What Is Garnishment?

Garnishment involves deducting a portion of an employee’s wages to repay a creditor.

How Does Garnishment Work?

Garnishment enables a person to whom an employee owes money to obtain payment of the sum due.

The creditor must take the administrative and legal steps in force in the place where they are located in order to obtain the right to request garnishment.

How Is Garnishment Calculated?

In Canada, the portion of wages that can be garnished vary from province to province. In Quebec, 30% of the employee’s gross salary can be garnished, after exemptions based on salary and number of dependents. In Ontario, garnishment can be up to 50% of wages but varies according depending on the creditor. Credit card debts and bank loans, for instance, can only garnish up to 20% of wages.

What Are the Employer’s Obligations When Garnishing Wages?

Employers are required to agree to the garnishment of an employee’s wages, and to cooperate by sending the information required for the procedure to the appropriate authorities, in accordance with the laws in force.

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