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BusinessLive reports that the government plans to introduce a cap on the percentage of an employee’s salary that can be "attached" by creditors using emolument attachment orders (EAOs – commonly known as ‘garnishee orders’) to collect debt.
The Courts of Law Amendment Bill proposes that no more than 25% of a debtor's salary can be attached, no matter how many attachment orders they may have against them. The bill, which seeks to address abuses in the civil debt recovery system, was introduced in the National Assembly this month and has been referred to the National Council of Provinces. Thereafter it will be sent to the president for approval. The bill gives effect to a Constitutional Court judgment stemming from action taken by business woman Wendy Appelbaum after she discovered that up to 80% of her employees' salaries was being deducted to pay debts to credit providers.
- Read this report by Angelique Ard in full at BusinessLive
Get other news reports at the SA Labour News home page