Wage deductions and enforcement: how to proceed

When an employer receives an order for enforcement (distraint) against an employee’s wage, it becomes what is known as the payer of the wage, with precisely defined obligations. Wage deductions and enforcement are a sensitive area in which a mistake can make the company liable for amounts paid out incorrectly. That is why it is important to know the correct procedure and to respect the decisions served on you, even though they add to the administrative burden of the payroll department.

What types of deductions there are

Wage deductions are divided into those the employer makes by law or on the basis of a decision, and those made on the basis of an agreement with the employee. The first group mainly includes enforcement deductions and deductions ordered by a court; the second includes, for example, repayments of a loan agreed directly with the employer. Each group has its own rules, and where deductions coincide, the order must be carefully observed.

• deductions on the basis of enforcement or a court decision,
• statutory deductions (e.g. advance payments),
• deductions on the basis of an agreement with the employee.

How to determine the amount of the deduction

For enforcement deductions, you start from the net wage and subtract what is known as the basic protected amount (základná nepostihnuteľná suma), which cannot be deducted. The remainder is then divided according to the rules into parts from which the claim is satisfied, with a distinction made between priority and non-priority claims. The protected amounts are derived from the subsistence minimum and the number of dependants, so always check the current figures, as they change regularly.

Order and coinciding enforcements

If several enforcements are directed at one employee, the order and priority of the claims must be respected. Priority claims, such as maintenance, are satisfied before the others. Where enforcements coincide, it is essential to keep precise records of how much has already been deducted and to whom it has been remitted, so as to avoid an error or claims being satisfied in the wrong order, which could expose the company to liability.

The employer’s procedure step by step

Once the order has been served, the employer has clear obligations, and failing to meet them exposes it to risk. It is advisable to proceed systematically and to keep up thorough communication with the bailiff.

1. confirm receipt and check the employee’s details,
2. calculate the net wage and the protected amount,
3. determine the deduction and remit it to the entitled creditor,
4. keep precise records and communicate with the bailiff.

The most common risks

Mistakes with wage deductions and enforcement arise mainly from an incorrect calculation of the protected amount, ignoring the order of claims, or failing to notify the bailiff that an employee has started or left. Professional payroll processing minimises these risks and ensures that the company meets all its obligations on time.

Agreement on wage deductions

A special case is deductions on the basis of an agreement concluded directly between the employee and the employer, for example to repay a loan granted or to compensate for damage caused. Such an agreement must be in writing and must clearly define the reason, the amount and the method of deduction. Even here, however, the employee’s protection must be respected and the amounts that must be left to them must not be touched. If an agreed deduction coincides with an enforcement deduction, statutory and enforcement deductions generally take precedence. It is therefore advisable to assess every agreement in advance in the context of the employee’s overall situation, so that the permissible limit of deductions is not exceeded and no complications follow.

If you are dealing with enforcement against your employees’ wages and want certainty in the procedure, contact the Bilvao team.

Related articles: Agreements on work performed outside employment: DoPČ, DoVP, DoBPŠ, Supplements for overtime, night work and work on public holidays, The minimum wage and its impact on the employer’s costs.

Frequently asked questions

Can an employer ignore an enforcement order against a wage?

No. As the payer of the wage, the employer is obliged to make deductions in accordance with the decision served on it. If it fails to do so, it may be liable for the amounts that should have been deducted and remitted to the entitled creditor.

What is the protected amount?

It is the part of the wage that cannot be deducted, so that the employee is left with a minimum to live on. Its amount depends on the subsistence minimum and the number of dependants. Check the current figures, as they change.