Garnishment of Wages in Ontario: What Creditors Can Collect

What is Wage Garnishment?

Wage garnishment is a court-ordered process by which a portion of your employment earnings is withheld by your employer and paid directly to a creditor to satisfy a debt.

The Process to Garnish Wages

1. The creditor must first obtain a court judgment (e.g., from Small Claims Court).
2. The creditor files a Notice of Garnishment with the court and serves it on your employer (the "garnishee") and you.
3. Your employer is required to withhold a portion of your wages and pay it to the court.
4. The court distributes the money to the creditor.

Ontario Wage Garnishment Limits

Under the Wages Act (Ontario), garnishment is limited to 20% of net wages for most debts. The remaining 80% is protected.

Exception: For support (child/spousal support) orders, the limit is 50% of net wages.

What Cannot Be Garnished?

• Ontario Works (OW) or ODSP payments
• CPP, OAS, and EI benefits (federally protected)
• Most pension income (subject to exceptions)
• Wages below the protected amount

Responding to a Notice of Garnishment

If you receive a Notice of Garnishment, you have options:

• Pay the debt to stop the garnishment.
• File a motion to vary if the garnishment causes undue hardship (e.g., you cannot afford basic necessities).
• Dispute the underlying judgment if it was obtained without your knowledge (default judgment review).
• Negotiate a payment arrangement with the creditor to stay the garnishment.

Can You Be Fired for a Wage Garnishment?

The Ontario Employment Standards Act does not expressly prohibit dismissal for a single garnishment, but repeated garnishments may trigger some protection. If you believe you were dismissed because of a garnishment, contact us to assess your options.