Definition
A court order requiring an employer to deduct a specified amount from an employee's earnings and pay it to a third party, typically to recover a debt. The employer is legally obligated to comply with the order and make deductions from the employee's pay.
UK Context
Attachment of earnings orders are made under the Attachment of Earnings Act 1971. They can be issued by county courts for civil debts, magistrates' courts for council tax and maintenance arrears, and the Child Maintenance Service. The employer must calculate the deduction based on a prescribed table and ensure the employee retains at least the protected earnings rate specified in the order.
Best Practices
- Process attachment of earnings orders promptly and comply with all deduction requirements
- Ensure the protected earnings rate is respected so the employee's take-home pay does not fall below the specified minimum
- Treat the existence of an attachment of earnings order confidentially within the payroll team
Frequently Asked Questions
Can an employer refuse to comply with an attachment of earnings order?
No, employers are legally required to comply. Failure to make the required deductions is a criminal offence that can result in a fine. If the employer believes the order is incorrect, they should contact the court, not ignore it.
What priority do attachment of earnings orders have?
If an employee has multiple orders, priority rules apply. Child maintenance orders generally take priority over other debts. The employer must ensure the employee retains at least the protected earnings rate after all deductions. If multiple orders cannot all be satisfied, the employer should contact the courts for guidance.