This report addresses the subject of determining what legislation, if any, should govern wage assignments. The primary recommendation is that irrevocable assignments of wages to secure payment of indebtedness be abolished by legislation, thus rendering them invalid. The report also makes alternative recommendations for regulation of the use of wage assignments if they are not abolished. It is recommended that an Act be passed to reform the law relating to assignments of wages, which term should be defined to include salaries. The proposed Act should declare invalid all irrevocable assignments of wages, given to secure repayment of an indebtedness; declare it does not affect revocable authorities which are revocable by the assignor or grantor at any time prior to actual payment by the employer; not except assignments made in favour of credit unions. An alternative to this proposal is to declare that a wage assignment given to secure the payment of any indebtedness shall be invalid unless it is specifically and expressly directed to a named employer; it is served upon that employer within 30 days; and it is expressed to be taken as security for a specific debt. Another alternative is to prohibit an employer from terminating the employment, or altering the terms of the employment to the detriment of the employee, or suspending the employee by reason only of an assignment or assignments of wages.
Final ReportBack to Publication Search