Saturday Star - - INSIGHT -

or­der or EAO prior to the grant­ing of a loan. Those do­ing so may be fined or im­pris­oned for up to three years. The same penalty ap­plies to any­one who fraud­u­lently ob­tains or is­sues a judg­ment, in­stal­ment or­der or EAO.

Pay­roll prac­ti­tion­ers need to fa­mil­iarise them­selves with all the amend­ments, Leg­gat says. “It has a ma­jor im­pact on how they man­age EAOs and their ser­vice to em­ploy­ees. Em­ploy­ers who are legally obliged to en­force gar­nish­ment or­ders will also ben­e­fit from their ad­min­is­tra­tor’s un­der­stand­ing of the law and how it can be ap­plied to re­lieve their bur­den.”

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