Wage garnishment is a reality that can affect both employees and employers. This legal process, governed by the Civil Procedure Spanish Law, involves a competent authority ordering the withholding of a portion of a worker’s salary to settle outstanding debts.
For businesses, receiving a wage garnishment notice can raise concerns and questions about how to proceed correctly within the established legal framework. In addition, it requires careful and precise handling for all parties involved.
For this reason, here are the details you need to know about the procedure.
How should a company proceed with the garnishment of a salary?
When the company receives a wage garnishment notice, it must withhold the amount owed in payments to the employee and notify the payer once the debt is covered to finalize the withholdings and accumulate unattachable perceptions. In addition, it must record the garnishment in the corresponding record book and forward a copy of the notification to all relevant parties, following established procedures to avoid penalties and ensure compliance with current regulations.
The wage garnishment must be calculated according to the guidelines of Article 607 of the LEC. Garnishable amounts are calculated as percentages ranging from 30% to 90%.
To carry out the garnishment, the following steps must be taken into account:
- Notification of the amount: A creditor entity is in charge of issuing the notification of the wage garnishment, where the amount is determined and the necessary data for payment is indicated.
- Notification to the debtor: The company notifies the employee or debtor so that he/she can choose between the two available options, where he/she can pay the debt in full or pay it gradually through the garnishments in his/her salary.
- Withholding of the debt: After having opted for gradual payment, the amount will be withheld from the employee’s salary and transferred to the creditor.
- Garnishment: If the debt is settled, a notice is issued to indicate the lifting of the garnishment.
What are the consequences for a company if it does not comply with the legal limits of the garnishment?
Failure to comply with these limits can have significant legal and financial consequences for the company. These range from financial penalties imposed by the competent authorities, legal claims for damages, to regulatory actions and investigations.
It is essential that companies rigorously follow the relevant laws and regulations to avoid any negative repercussions.
At LEIALTA we understand the importance of providing solid and reliable support in sensitive legal situations such as these. Our team of labour and compliance experts is ready to provide you with the necessary guidance at every step of this process, regardless of the size or sector of your company.
From the interpretation of the initial notification to the implementation of the corresponding withholdings, we are committed to providing you with personalised and efficient advice that allows you to comply with all legal obligations in an appropriate and timely manner.
Subscribe to our alerts
