If you’re dealing with debt in South Africa, chances are you might have heard about garnishee orders. They’re a serious matter—because they allow creditors to legally deduct money from your salary to pay off what you owe. But the good news is, a garnishee order can be stopped or even set aside if the situation calls for it. Whether you’re an employee or an employer, knowing how this works can save you stress and help you manage your finances or workforce better.
Let’s break down how a garnishee order can be stopped, how to prevent one, and what both employers and employees need to know.
What Is a Garnishee Order?
A garnishee order (also called an emoluments attachment order) is a court order that tells an employer to deduct a certain amount from an employee’s salary and pay it directly to a creditor. This is usually done when a person owes money and isn’t paying back voluntarily.
The employer must comply with the garnishee order, which is served by a court official, and deduct money up to a maximum of 25% of the employee’s gross salary, leaving enough for living expenses.
Can a Garnishee Order Be Stopped or Cancelled?
Yes, a garnishee order can be stopped or set aside, but there’s a process involved.
When Can You Stop a Garnishee Order?
- Debt Paid Off: If you’ve paid the debt in full, the creditor should notify your employer to stop the deductions.
- Partial Payment: If you’ve paid a big chunk and the remaining amount is less, you can apply to the court to adjust or stop the garnishee order.
- Disputing the Debt: If you never owed the debt or there’s a mistake, you can take the order to court and apply to have it set aside.
How to Set Aside a Garnishee Order
You or your legal representative can apply to the Magistrate’s Court to have the order set aside by showing “good reasons” as per the Magistrate’s Court Act. This might include proving you’ve paid the debt or that the order is incorrect.
If the creditor does not inform your employer after you’ve paid off the debt, and deductions continue, you can take legal action to stop the unfair payments.
How Employers Can Handle Garnishee Orders
Employers have an important role in managing orders correctly:
- Verify the Order: When a garnishee order arrives, employers should ask to see the original court order with the case number, court stamp, and debtor details.
- Ensure Legal Compliance: Employers should confirm that the deduction does not exceed 25% of the employee’s gross salary.
- Keep Employees Informed: Employers should provide the employee with a copy of the garnishee order and keep open communication about the deductions.
- Stop Deductions When Informed: Once notified by the creditor or court that the debt is settled or the order is cancelled, employers must stop salary deductions immediately.
How to Prevent a Garnishee Order
The best way to avoid dealing with garnishee orders is prevention:
- Manage Debt Proactively: Stay consistent with repayments to creditors to avoid legal action.
- Seek Debt Counselling: If debt becomes overwhelming, get professional help early to negotiate manageable repayment plans.
- Communicate with Creditors: Often, creditors will work with you to avoid going to court, which can prevent an order altogether.
FAQs About Garnishee Orders
Can I check if my garnishee order is legal?
Yes. Your employer should show you a copy of the order with all official court details. You can also take this information to the Credit Ombudsman, who will verify if the order follows the law and if the deductions are correct.
What if the garnishee order was issued by the wrong court?
If the order wasn’t issued by the correct court, it’s automatically invalid. You can claim back any money paid under that invalid order, plus interest.
Can I dispute the amount deducted?
Yes, you can challenge the amount if it’s more than 25% of your gross salary or if you’re struggling financially. The court may reduce the amount to a more affordable level.
Are there extra costs involved in garnishee orders?
There can be legal fees and collection commissions, but these cannot exceed the total debt amount owed. For example, if you owe R10,000, you can’t be charged more than that.
What should I do if deductions continue after I’ve paid off my debt?
Contact your creditor to confirm they have informed your employer. If deductions don’t stop, you can take legal action to recover the money and stop the garnishee order.
Final Thoughts
Garnishee orders can feel overwhelming, but understanding your rights and options can empower you to take control. Whether you’re an employee facing deductions or an employer managing these orders, staying informed and proactive is key.
If you think an order against you isn’t right or needs to be stopped, DCM Corporate is here to help. We specialise in assisting both employees and employers with garnishee order management and debt solutions. Don’t hesitate to reach out to us for expert advice and support.
Remember, prevention is always better, so managing your debt responsibly is the best way to avoid garnishee orders in the first place.