Garnishment

What is Garnishment?

Garnishment in HR management is a legal process. This occurs when an employer must take money from an employee's paycheck to pay off debts, like child support or taxes, as ordered by a court or government agency.

Why Does Garnishment Happen?

Garnishment usually occurs when an individual fails to pay debts or fulfil certain legal obligations, such as child support. Creditors or government agencies may seek court orders to recover the owed amounts from the concerned individuals. If the individual does not own any property that can be pledged to recover the funds, these amounts are typically procured through their employers. Employers are legally bound to comply with these orders and deduct the specified amounts from their employee's pay checks.

Types of Garnishments

Garnishments usually fall into two categories or types – voluntary garnishment and involuntary garnishment.

• Voluntary Garnishment: Here, the employees authorise their employers to proceed with deductions from their salary for debts, such as loan repayments.

• Involuntary Garnishment: This happens when the employee does not authorise the employer for any deductions, and the creditors or concerned agencies obtain a court order to procure funds from the employee after realizing that they are not complying with the demands to pay the debts through any other means.