- A garnishee is whoever owes money to the person being sued, or already judged to owe a debt — most commonly an employer, who owes wages, or a bank, which owes the balance in an account.
- Check whether you actually owe money to the person named — as an employer paying wages, or otherwise holding funds or owing a debt to them.
If your business receives a notice of garnishment naming one of your employees, or your bank is served with one naming an account holder, you become part of someone else's court case whether you want to or not. Ontario law calls this role the "garnishee," and it comes with real obligations — get them wrong, and you can end up with problems of your own.
This article sets out, in plain terms, what a garnishee's notice of garnishment obligations generally look like in Ontario, so an employer or financial institution served with one knows what to do next.
What Is a "Garnishee"?
A garnishee is whoever owes money to the person being sued, or already judged to owe a debt — most commonly an employer, who owes wages, or a bank, which owes the balance in an account. Garnishment procedure in Ontario is governed by Rule 60.08 of the Rules of Civil Procedure: once a garnishee is properly served with a notice of garnishment, they are drawn into the enforcement process and must respond appropriately.
The Garnishee's Core Obligations
- Confirm the relationship. Check whether you actually owe money to the person named — as an employer paying wages, or otherwise holding funds or owing a debt to them.
- Work out the protected portion. If you are an employer, the Wages Act sets out how much of an employee's pay must remain protected and how much can be withheld, and the split depends on the kind of debt being enforced.
- Withhold going forward. For wages, this is typically an ongoing obligation, applied pay period after pay period, rather than a single, one-time payment.
- Pay the withheld amount as directed. Follow the payment instructions in the notice rather than sending money directly to the debtor.
- Keep clear records. Document what was withheld and when, in case the amount, the debtor's employment status, or the underlying order is later questioned.
- Flag material changes. If the employee's job ends, or the underlying relationship changes, that is generally worth communicating rather than assuming the garnishment quietly resolves itself.
Getting the Percentage Right
| Type of debt being enforced | Employee keeps | Withheld/garnished |
|---|---|---|
| Ordinary debt (loan, credit card, unpaid invoice, judgment for damages) | 80% | Up to 20% |
| Support or maintenance order | 50% | Up to 50% |
These percentages come from the Wages Act and reflect the law as of mid-2026 — confirm the current figures, since garnishment rules can change, before finalizing any deduction calculation.
What Happens If a Garnishee Ignores the Notice
A notice of garnishment is not a polite suggestion — it flows from a court process, and ignoring it does not make the underlying obligation disappear. Ontario's enforcement rules give the court tools to address a garnishee who fails to respond or comply properly, which can expose the garnishee itself to consequences beyond the original debtor's problem. If you are uncertain how to respond, get legal advice rather than setting the notice aside.
Employers vs. Banks: A Different Practical Picture
An employer's obligation is typically ongoing, recalculating a withholding every pay period for as long as the person remains employed and the order remains in force. A bank's obligation more often relates to the funds sitting in an account at a particular point in time, which can raise different practical questions, such as distinguishing exempt deposits from garnishable ones. Either way, the underlying legal obligation to comply with a properly served notice is the same.
Frequently asked questions
Do I need a lawyer to respond to a notice of garnishment as an employer?
Not necessarily for straightforward cases, but if you are unsure whether the notice was validly served, how to calculate the withholding, or how to handle a departing employee, a brief legal consultation can prevent a costly mistake.
What if the employee already quit before we received the notice?
Generally, you cannot withhold from wages you never pay, so if the employment relationship has already ended, that is important information to communicate back through the court process rather than simply ignoring the notice.
Can I just withhold the full amount owed in one lump sum?
For wage garnishment, the Wages Act protects a set portion of every paycheque — the point is ongoing, partial withholding over time, not handing over an employee's entire pay at once.
What if I'm genuinely unsure how much to withhold?
Review the notice carefully for instructions, and if it remains unclear, get legal advice. Miscalculating, whether by withholding too much or too little, can create problems either for the employee or for your own compliance with the order.
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