In the current economic climate and previous easy access to credit, over- indebtedness and inability to pay accounts have become quite commonplace.  Unfortunately the process in many instances lead to the service of EAO’s on employers and requires many man hours of work from the employer.  It might also lead to hardship for the employee, which in turn has an effect on the attendance and productivity of the employee.

In this guide, we give a brief summary of the debt collection process and the effect thereof on the employer and employee.  We have further

offered practical advice of how to deal with frequently arising situations.


The debt collection process
• From default by the debtor to legal action taken

The issuing of EAO’s (“garnishee orders”) 

• Court judgement
• Administration orders
• Written consent (debtors beware!)

• Issuing of EAO by the clerk of the court
• Valid service of the EAO – beware of fraud

Checklist for employers  


• The employer’s statutory duty
• Legal recourse on failure by the employer to accept service or implement the order
• Commissions / admin fees

The bigger picture  
• Common problems with EAO’s
• Ongoing management of EAO’s in the workplace
• Risk management and social responsibility
• Recourse of the employee/debtor
• Outsourcing EAO administration
• Using a debt counsellor
• Lack of reaction from attorneys / debt collectors

The booklet is available at a unit cost of R350 for an introductory period until 15 April 2013. Upon receiving proof of payment and the contact details for electronic delivery of the order, the document will be sent by e-mail.
Please note that the booklet is subject to copyright. Distribution of unauthorised copies will result in legal action. Contact This email address is being protected from spambots. You need JavaScript enabled to view it. for enquiries.