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.”