How does wage garnishment work in Ontario if someone gets a judgment against me?
Wage garnishment in Ontario is a post-judgment remedy. After a creditor wins or obtains a judgment in court, they can ask the court to issue a Notice of Garnishment directed to your employer. Your employer is then legally required to deduct a portion of your wages and remit it to the court, which passes it to the creditor.
Ontario limits how much of your wages can be garnished. Generally, only a percentage of wages above a basic exemption threshold may be taken; the exact calculation depends on your wages and the type of debt. Certain forms of income — such as social assistance and ODSP payments — are generally exempt from garnishment under provincial legislation.
Garnishment continues until the judgment debt, including accrued interest and costs, is paid in full, or until the court orders otherwise. You can bring a motion to vary the garnishment if it causes undue hardship, but you will need to demonstrate your financial circumstances to the court.
If your employer receives a garnishment notice, they are bound to comply. Retaliating against an employee for a garnishment is prohibited under the Employment Standards Act, 2000. Speak with a lawyer promptly if you are served with a garnishment notice — there may be steps to challenge or negotiate before your first paycheque is affected.
Key takeaways
- Garnishment requires a court judgment first — it is not available to a creditor who has not sued.
- A portion of wages above a provincial exemption level can be deducted each pay period.
- Certain income types, like ODSP, are generally exempt from garnishment.
- A motion to vary may reduce the amount garnished based on hardship.