Looming changes to debt collection processes – employers take note

garnisheeThe Department of Justice and Constitutional Development released a statement saying that it is in the process of finalising the Magistrates’ Courts Amendment Bill. The amendments aim to curtail the abuse of the debt collection system.

 

This comes in light of the recent Western Cape High Court Decision of Judge Siraj Desai on the current system of obtaining emoluments attachment orders. The process of obtaining these order have been declared unlawful, invalid and inconsistent with the Constitution as they do not provide for judicial oversight.

 

Until confirmation of the order by the Constitutional Court the judgement will be of force or effect. Employers are advised to take note of the judgment and if they have emoluments attachment orders on their employees?

We recommend that employers seek legal advice to establish the validity of these orders and whether the employees can afford the deductions.

 

For more information on our service offering relating to civil litigation and dispute resolution click here.

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