The role and obligations of employers in the enforcement of execution
For every execution creditor who seeks to involuntarly fulfill his claim, the most expedient way is the execution on execution debtor’s monetary claim, which is carried out by attachment and transfer directly to the execution creditor’s account. Employers often ask themselves what is their role in the enforcement of execution if the execution debtor’s account is blocked and enforcement is already underway and the salary is paid to the execution debtor’s account.
To better understand this issue, it is important to emphasize that the monetary claim of the execution debtor consists of:
1) salary and other permanent cash income;
2) other funds paid into the execution debtor’s account.
While the employer enforces the execution on salary, the Financial Agency (hereinafter: Fina) enforces execution on funds on all accounts and term deposits of the execution debtor in all banks. The execution debtor may receive on the account, in addition to salary, some other income such as rent or fees, and may also have savings or term deposits.
This specifically means that salary / permanent earnings and funds on the execution debtor’s account are two different subjects of execution and execution proceedings can be conducted at the same time on both the salary and the debtor’s accounts, i.e. one procedure does not exclude the other.
In the event that the employer enforces execution on the execution debtor’s salary, and Fina on the funds on the execution debtor’s account, the employer is not obliged to inform Fina about the enforcement of execution on the salary, nor does Fina have the obligation to inform the employer about the execution on funds (except for the obligation to notify about protected account number).
If Fina has notified the Employer about the opening of a protected account, the Employer will pay the part of the salary exempted from execution in favor of the protected account, and the remaining part of the salary in favor of the current account of the employee / execution debtor from which the execution carried out by Fina will be charged.
However, if the Employer receives the basis for action for the purpose of enforcement of execution on the salary, he is obliged to act in such a way that the part of the salary exempted from execution is paid to the protected account of the employee / execution debtor, and the rest directly to the account of the execution creditor stated in the basis.
The employer enforces the execution on salary and other permanent cash income, mostly on the basis of:
– legally effective notarial writ of execution;
– private documents of the debtor, so-called attachment upon execution debtor’s consent.
It is possible for the Employer to receive several basis for action for the same employee in which case he is obliged to form an order of settlement for executing the basis. The date of submitting the motion for execution is crucial for forming the order of writs of execution, and in case of the debtor’s private document the date when employer received the document.
In the enforcement of execution on salary and other permanent cash income the employer is obliged to take into account the restrictions on enforcement and income exempt from enforcement.