Attachment of Earnings (NI)

Attachment of Earnings Orders (Northern Ireland)

WHAT IS AN AEO

Where a judgment debt is in arrears and the debtor is in PAYE employment you can make an application to the court to order the judgment debtor’s employer to make deductions from the judgment debtor’s earnings. If the court makes an order, the employer has to make deductions, at weekly or monthly intervals (or whenever they are paid), until the judgment debt is satisfied. This is known as ‘attaching’ the debtor’s earnings.  The court may also, in some circumstances, make an AEO without application from a judgment creditor. For example, to secure payments under an administration order or at the hearing of a judgment summons.

WHAT MUST THE EMPLOYER DO

1. Where an attachment of earnings order has been made, the employer shall, if he has been served with the order, comply with it; but he shall be under no liability for non-compliance before seven days have elapsed since the service.
2. Where a person is served with an attachment of earnings order directed to him and he has not the debtor in his employment, or the debtor subsequently ceases to be in his employment, he shall (in either case), within 10 days from the date of service or, as the case may be, the cesser, give notice in writing of that fact to the Office.
3. Part II of Schedule 1 shall have effect with respect to the priority to be accorded as between two or more attachment of earnings orders directed to a person either by the Office and a court, or by a court, in respect of the same debtor.
4. On any occasion when the employer makes, in compliance with the order, a deduction from the debtor's earnings -
       (a)  he shall be entitled to deduct, in addition, £1 or such other sum as may be prescribed by rules
              towards his clerical and administrative costs; and
       (b)  he shall give to the debtor a statement in writing of the total amount of the deduction.
5. Any sum deducted by the employer from the debtor's earnings in compliance with the order, but not yet paid to the Office, shall in the bankruptcy or winding-up of the employer be treated as money held by the employer on trust for the Office.

To set up an AEO (NI) go to Payroll > Double click Employee

  1)    Select employee to apply the Maintenance Attachment to 
          Go to Payslips>, then double click on the employees name for whom you have received the order for.

  2)    Deductions
          Under deductions click the Add button

  3)    Attachment of Earnings order
         From the dropdown, select Attachment Orders

  4)    Add Attachment Order
         Click Add attachment Order, and from the dropdown select Attachment of Earnings Order (NI)

SETTING UP THE AEO DETAIL

• Enter Description
• Enter Reference
• Type the Date to apply from and Date to Stop (if applicable)
• Tick to Deduct £1 Admin charge (if applicable)
• Enter Cumulative Amount Paid At Start (if applicable)
• Enter Cumulative Amount this Employment (if applicable)
• Press Save to confirm and to apply the AEO