Direct Earnings Attachment guidance updated
29 March 2018
Thanks to the resolve of one of our members, an area of the Direct Earnings Attachment (DEA) guidance on GOV.UK has been revised to make the information about telling an employee about the amount of deduction clear.
Member Paul Hughes came to policy questioning the area of guidance around notifying employees of the amount of deduction under a DEA. We turned to the DEA Debt Management team at the Department for Work and Pensions, who are responsible for this area of guidance and they answered Paul’s questions specifically and also assured us that they would update guidance, which true to their word, they have done.
Q. Looking at the new DEA guidance, how do they want us to show “how a deduction amount was calculated” and how would they like us to advise our employee “well in advance of payday when the first deduction will be made”?
A. Since the change to Regulation 21 (which was actually amended in 2015), there is no requirement on the Employer to automatically notify the debtor of the recovery. However, if the debtor requests details in writing the Employer must provide details within 28 days. See The Social Security (Overpayments and Recovery) Amendment Regulations (2015).
Q. Is this requirement to notify employees in advance a ‘must do’ or recommendation? If so is it policed and what level of non-compliance do you find? I have to admit to assuming that most employers believe that they have fulfilled this requirement when they issue the payslip that details the deduction?
A. See the previous answer and yes if they notify them via the payslip employers have fulfilled their requirements in law.
The original text and the amended text within the ‘guide for employers’ and the ‘more detailed guide’ is shown below:
Direct Earnings Attachment: a guide for employers (page 6)
Original:
You have a duty to your employee:
- To notify your employee in writing of:
- The amount of the deduction taken, including any amount taken for administrative costs (see section on Administrative Costs, page 13)
- How the deduction amount was calculated
The above information may be provided on the payslip for the pay period to which the deduction relates.
Ensure you advise your employee that deductions will be made from their wages/salary and made over to DWP Debt Management, well in advance of the payday when the first deduction will be made.
If you have any problems or queries relating to the DEA, please ring our dedicated employer helpline number on 0800 916 0614.
Amended:
You have a duty to your employee to notify them in writing of the amount of the deduction taken, including any amount taken for administrative costs (see section on Administrative Costs, page 13).
The above information may be provided on the payslip and must be sent or given to the employee not later than the pay day for the pay period to which the deduction relates or, where this is not possible, not later than the following pay day.
If your employee requests an explanation in writing of how the deduction was calculated, you must provide a written response within 28 days of receiving their request.
If you have any problems or queries relating to the DEA, please ring our dedicated employer helpline number on 0800 916 0614.
Direct Earnings Attachment: more detailed guide (page 16)
Original:
7.16 How do I inform the employee of the amount of deductions?
The regulations state that the employer must inform the employee of the amount of the deduction, including any administration costs, and how that amount is calculated. This information can be included on the payslip, by showing the amount with the explanation ‘DEA table’ or ‘DEA fixed’.
Amended:
7.16 How do I inform the employee of the amount of deductions?
The regulations state that the employer must inform the employee of the amount of the deduction, including any administration costs. This information can be included on the payslip, by showing the amount with the explanation ‘DEA table’ or ‘DEA fixed’.
The regulations also state that the employer must provide a written response within 28 days of a request of how the deduction was calculated from their employee.
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CIPP comment As the ERA (1996) s8 states, an employee has the right to be given by his employer, at or before the time at which any payment of wages or salary is made to him, a written itemised pay statement containing (amongst other particulars) the amounts of any variable deductions from that gross amount and the purposes for which they are made. Our thanks again to Paul, and we wholeheartedly agree with his comment on the revised text: “I think it reads a whole lot better now.” |