Guilt harms

Helpful tips on wage garnishment employee

Forty-six percent of business owners are dealing with staff who have wage garnishments. In the hospitality industry, the problem is even greater. Per year, an employer quickly loses €13,000 to a wage garnishment. Think administration costs, absenteeism, lost productivity and theft. Six tips to limit the damage.

Employers are required to cooperate with a wage garnishment. The administrative costs of a wage garnishment are the responsibility of the employer and cannot be recovered from the employee.

The wage garnishment involves not only wages, but also bonuses, vacation pay and thirteenth month. The employer is required to send a statement containing all financial data to the bailiff. After "service of the garnishment notice" by the bailiff - the establishment of the wage garnishment - the employer must transfer to the employee what is known as the garnishment-free foot. This is the portion of the wage meant for basic needs.

1. Inform the payroll department

With a wage garnishment, the employer must withhold part of the employee's salary and transfer it to the bailiff. The employer may no longer make full payments. So inform the payroll department in time! If the employee receives more than the attachment-free foot, the creditor can recover it from the employer. It remains to be seen whether the employer can recover the overpaid wages from the employee, given his situation.

2. Prevent debt

The hospitality industry employs a relatively large number of young people. National research shows that at least half of young people between the ages of 18 and 27 have debts. They incur these debts with providers, energy companies and health insurance companies. Due to aggressive bailiffs and collection agencies, those debts also add up quickly.

Research shows that money stress reduces IQ by 13 to 14 points. Employees make less thoughtful or sometimes even stupid decisions as a result. As a result, they often create new problems.

To prevent absenteeism and lost production, it pays to help employees with information and guidance. For example, pay for a financial advisor's first hour. Point employees to digital financial health checks, such as those provided by Nibud. Share information in a general way such as through the intranet, staff magazine or newsletter.

3. Create a concrete action plan

Make a short-term plan with the employee. Preferably even before a wage garnishment occurs. Since you have four weeks to provide the desired information to the bailiff, you can use that period to make arrangements with the employee to avoid wage garnishment.

4. Calculate the attachment-free foot together

A wage garnishment has a major impact on your employee's life, and it can also negatively affect his or her performance. Show commitment. Together with the employee, calculate the garnishment-free foot. This is usually 90 percent of the welfare standard, but it can be higher depending on the personal situation. There is a calculation program at Uwbeslagvrijevoet.nl. If, based on this, the employee sees that the attachment-free foot is too low, he can communicate this to the bailiff. The bailiff can then retroactively adjust the nonpayment.

5. Be creative

Consider creative solutions to reduce money worries. For example, sometimes above-legal vacation days can be paid off and employee can use that to satisfy part of the debt.

6. Place the employee over

If an employee is in a position where a lot of cash is handled, it may be wise to temporarily transfer him to a position where the risk of fraud, theft or other misconduct is reduced. Do this carefully, however.

What is a wage garnishment?

If an employee does not pay his private bills, it can lead to a wage garnishment. This means that the bailiff garnishes the employee's wages. A wage garnishment requires a court order or injunction, which the creditor requests from the court. This often occurs after many reminders to the employee have gone unanswered. The creditor can be the tax authorities or any other creditor of the employee. If the request is granted, the bailiff first knocks on the employee's door and then on the employer's with a so-called garnishment writ. This writ states who the creditor is, on what grounds the creditor is levying wage garnishment and what amount he claims from the employee. After garnishment, the employer is given four weeks to provide a statement of all claims. Earlier is not necessary and may even be careless because the employee must have the opportunity to challenge the garnishment. Keep this in mind and engage in timely discussions with the employee about the announced wage garnishment. Before the bailiff knocks on the employer's door, he has often already asked the employer for information about the various amounts the employee receives. The wage garnishment extends to all claims arising from the employment relationship. This includes not only wages, but also bonuses, vacation pay and thirteenth month. (Social) insurance and pension contributions are not included.

Make debt issues negotiable

Of course, it is not primarily the employer's responsibility to solve employee financial problems, yet the employer does have some duty of care. Make the employee's debt problems negotiable. Often employees in debt apply a certain ostrich policy. This leads to the problems getting worse.

Signs of debt problems include: difficulty concentrating, fraud or theft, asking for loans or advances, frequently calling in sick, requesting extra hours. Because of shame, it is important to have the conversation in a careful, judgment-free manner. Don't talk from the "I" but from the you form. To promote motivation, it is better to ask activating questions. So not: how did it come to be this way? But rather: you are in a difficult situation. What will it get you if you can solve the financial problems anyway? On Financieelgezondewerknemers.nl there is a guide to debt counseling.

Enlist help. Refer the employee to agencies. For example, the employee may be entitled to free debt assistance from the municipality through Bureau Schuldhulpverlening. You can also bring in an external budget coach. In this way, the employee is given a push in the right direction. By the way, Nibud employs special coaches for employers. They know how to deal with the employer-employee relationship and the employer's fear of high costs. This way you can help employees with debt problems, without taking everything upon yourself.