Garnishing Wages in Ontario: Rules, Limits, and a Practical Step-by-Step Guide

Wage garnishment can feel overwhelming, whether you are a creditor trying to collect a valid debt or an employee who has just received notice that part of your paycheque will be withheld. In Ontario, garnishing wages is a tightly regulated legal remedy. There are clear steps to follow, strict limits on how much can be taken, and important protections for workers’ basic living expenses.

This guide explains how garnishing wages in Ontario works, what creditors and employers must do, the limits and exemptions that protect debtors, and the special rules that apply to support and government debts. You’ll also find examples, practical tips, and answers to common questions so you can navigate the process with confidence.

What Is Wage Garnishment in Ontario?

Wage garnishment is a court-enforced process that directs an employer (called the garnishee) to withhold a portion of an employee’s earnings and remit the funds toward a debt. It is commonly used for consumer debts after a court judgment, and for certain obligations like child and spousal support. Government agencies may also garnish for taxes or benefit overpayments under their own legal authority.

In Ontario, wage garnishment is governed by the province’s civil procedure rules and wage protection laws. The aim is to balance a creditor’s right to be paid with a debtor’s need to cover essential living costs.

Who Can Garnish Wages and When?

Only specific parties can garnish wages, and usually only after meeting legal prerequisites:

• Private creditors (e.g., banks, lenders, landlords): Typically must sue, win a judgment, and then obtain a notice/order of garnishment from the court.
• Family support enforcement: The Family Responsibility Office (FRO) enforces child and spousal support and can garnish wages with stronger powers and higher limits than ordinary creditors.
• Government and tax authorities: The Canada Revenue Agency (CRA) can issue a Requirement to Pay and garnish wages to collect taxes or benefit overpayments, often without having to first obtain a court judgment. See the Canada Revenue Agency for details on its collection powers.

If you receive a wage garnishment and are unsure of its basis, read the documents carefully. They should state the underlying judgment or legal authority and the amount claimed.

Ontario Wage Garnishment Limits and Exempt Income

Ontario law sets clear caps and exemptions to prevent excessive hardship:

• General consumer debts: Up to 20% of an employee’s wages can be garnished. The limit is generally applied to net wages (after statutory deductions like income tax, CPP, and EI).
• Support orders (child and spousal support): Up to 50% of wages can be garnished to satisfy arrears.
• Government debts: Separate statutes govern amounts and procedures. For example, the CRA can garnish wages to collect taxes. The agency sets amounts on a case-by-case basis; contact the CRA if you need to discuss hardship or payment arrangements.

Income that is generally exempt from garnishment by ordinary creditors includes social assistance and certain insurance payments. Many government benefits (such as Employment Insurance) are protected from most private creditors. However, support arrears and certain government debts may still be collected from benefits under specific statutes. For information about consumer protections and dealing with debt, see the Financial Consumer Agency of Canada.

Note: Multiple garnishments may apply at once, but total deductions are still constrained by legal limits and priorities. Support and government debts often take priority over ordinary consumer debts.

Step-by-Step: How Garnishing Wages in Ontario Works

The exact forms and timelines differ between Ontario’s Small Claims Court and Superior Court of Justice, but the core steps are similar.

1) Get a Court Judgment

For most private debts, a creditor must first sue and obtain a court judgment that confirms the amount owed. If the debtor does not pay voluntarily, the creditor can enforce the judgment, including by garnishing wages.

Tip for creditors: Before suing, consider whether the debtor is employed and likely collectible. A judgment is only as valuable as your ability to enforce it.

2) File a Notice of Garnishment

After judgment, the creditor files a notice of garnishment with the court. The notice identifies the debtor, the employer (garnishee), and the judgment details. Court fees apply. The court then issues the notice/order authorizing garnishment up to the legal limit.

Practical point: Creditors need accurate employer information. If you name the wrong garnishee, or the debtor has changed jobs, you will not collect.

3) Serve the Employer (Garnishee)

The creditor must properly serve the notice on the employer and notify the debtor. Service is usually done by a process server or another approved method. Once served, the employer becomes legally obliged to comply with the order.

Employers may need to complete a brief statement confirming employment status and pay frequency. If the debtor no longer works there, the employer typically indicates this to the court.

4) Employer Withholds and Remits

After service, the employer starts withholding the specified portion of wages each pay period. In Ontario, garnished funds are generally remitted to the court enforcement office (often called the sheriff or court enforcement officer), which then forwards payment to the creditor according to the court’s directions.

If the debtor’s pay fluctuates (hourly work, overtime, commissions), the withheld amount is recalculated each pay to respect legal limits.

5) How Long a Garnishment Lasts

A wage garnishment usually continues until one of the following occurs:

• The full judgment (plus any interest and costs) is satisfied.
• The court lifts, varies, or expires the notice of garnishment under the rules.
• The debtor stops working for the garnishee, in which case deductions stop; the creditor may seek to garnish a new employer.

Example: Calculating a Typical Garnishment

Suppose Alex earns $1,600 net every two weeks after income tax, CPP, and EI. A creditor has a valid judgment for a consumer debt and obtains a wage garnishment.

• Maximum garnishable amount (consumer debt): 20% of $1,600 = $320 per pay period.
• If support arrears were involved instead: up to 50% of $1,600 = $800 per pay period.

If Alex works variable hours, the actual dollar amount will shift each pay, but the percentage cap remains the same.

Your Rights and Options if Your Wages Are Garnished

If your wages are being garnished, you still have important rights and options. Taking action early can prevent additional fees and interest.

Challenge or Vary the Garnishment

• Was there a mistake? If the debt isn’t yours, the amount is wrong, or the process wasn’t followed, you may ask the court to review or set aside the garnishment.
• Financial hardship: In some circumstances, you can apply to vary the garnishment based on undue hardship. Provide a clear budget and documentation.

Contact the court where the garnishment was issued or a legal clinic for guidance on forms and local procedures. For consumer-rights information and managing debt, the Financial Consumer Agency of Canada has practical resources.

Negotiate or Repay the Debt

• Talk to the creditor: Many creditors will agree to a settlement or payment plan, which may lead them to suspend or lift the garnishment.
• Confirm in writing: If you reach a deal, get the terms in writing and make sure the creditor files any required court documents to vary or discharge the garnishment.

Consider Insolvency Solutions

If you have multiple debts and persistent garnishments, a formal insolvency proceeding may help. In Canada, a consumer proposal or, if necessary, personal bankruptcy can halt most enforcement actions once filed. An insolvency professional can explain pros and cons.

For educational resources and debt relief options, visit Canadian Debt Relief.

Employer Duties and Risks as Garnishee

Employers play a crucial role and face legal risk if they ignore a valid notice of garnishment:

• Follow the order: Start withholding on the first pay after proper service, according to the court’s instructions and legal limits.
• Remit correctly: Send payments to the court enforcement office as directed. Keep records of amounts deducted and dates.
• Respond to the court: Where required, file any garnishee statements on time. If the employee no longer works for you, advise the court.
• No retaliation: Employers generally cannot dismiss or penalize an employee simply because their wages are subject to a garnishment.

Failing to comply with a valid garnishment can expose the employer to liability for amounts that should have been withheld.

Special Cases: Support, Taxes, and Government Debts

Not all garnishments follow the same rules. Three common special categories are:

• Child and spousal support: Enforced primarily by the Family Responsibility Office. Withholding limits are higher (up to 50%) and enforcement tools are stronger than for ordinary debts.
• Taxes and federal debts: The CRA can garnish wages and other income to collect unpaid taxes or government benefit overpayments through a Requirement to Pay. The CRA may act without a court judgment. If you face tax garnishment, contact the CRA to discuss payment arrangements or relief options.
• Government benefits: Many benefits are protected from most private creditors, but may be recoverable by government for overpayments or by support enforcement. Rules differ by benefit and statute.

If you receive a notice relating to support or taxes, read it carefully; the procedures, timelines, and dispute options may differ from ordinary civil garnishments.

Preventing Wage Garnishment: Practical Tips

It is often easier to prevent a garnishment than to undo one. Consider these steps at the first sign of trouble:

• Answer collection letters: Many garnishments follow months of unreturned calls and letters. Early dialogue can lead to affordable payment plans.
• Prioritise essential debts: Support, taxes, and rent/mortgage arrears can escalate quickly. Address them before lower-priority debts.
• Make a realistic budget: Track income and essential expenses. Share your budget with creditors when negotiating.
• Get reputable advice: Free or low-cost help is available through community legal clinics and non-profit credit counselling. The Financial Consumer Agency of Canada offers unbiased guidance on dealing with debt.
• Consider a consolidation strategy: Consolidating high-interest debts into a lower-rate loan or a consumer proposal may reduce pressure and avoid garnishment.

For general information on Canadians’ debt trends and context, see Statistics Canada.

Sources and Further Reading

• Financial Consumer Agency of Canada – Consumer protections, dealing with debt, and working with creditors.
• Canada Revenue Agency – Collections, Requirement to Pay, relief measures, and taxpayer options.
• Statistics Canada – Data and analysis on household finances and debt trends in Canada.

Conclusion

Garnishing wages in Ontario is a structured legal process with clear steps, limits, and safeguards. Creditors must obtain the proper authority and follow service rules; employers must withhold and remit correctly; and debtors retain important rights to challenge, negotiate, or seek relief when hardship arises. Understanding how the process works—from judgment to withholding—can help all parties minimise errors, reduce costs, and reach a fair resolution.