I recently had an enquiry on how to handle a garnishee order for an employee who was suspended without pay. I reviewed the Act and consulted with our ‘Garnishee’ team and this is the feedback:
The Act is not clear, however, we usually advise clients to inform the collecting agent that the employee is suspended without pay and, as a result, the deduction cannot be made.
Once the hearing or disciplinary process is complete and the employee is dismissed, the collecting agent is to be informed of the dismissal and that no further deductions will be made for this employee.
If, however, the employee is re-instated, it is likely that their pay will also be re-instated for the period that they were suspended. In this instance, the deduction is to take place and the collecting agent informed that the employee has returned to duty and that deductions will continue.
Consider outsourcing your payroll and all your payroll 3rd party payments. For an efficient and cost effective service, contact Karen on 082 891 1722.