How to Garnish Wages in Ontario Small Claims Court

Wage Garnishment Is Usually Your Best Enforcement Tool

If the debtor has a job, wage garnishment is typically the most reliable way to collect an Ontario Small Claims Court judgment. Unlike a one-time bank account seizure, wage garnishment is ongoing — the employer sends a portion of each paycheque to the court clerk until the judgment is satisfied. It's automatic, it's predictable, and the debtor can't dodge it without quitting their job.

The process starts with two forms and costs $144. The garnishee generally pays within 10 days after service or after the debt becomes payable, whichever is later; the clerk distributes the first payment 30 days after receiving it.

The Filing Process

Step 1: File Form 20P (Affidavit for Enforcement Request)

Form 20P is your sworn statement of the judgment details, post-judgment interest calculation, and the total balance owing. You need to calculate interest under CJA section 129 (4.0% per annum for Q4 2026) and account for any partial payments received.

Step 2: File Form 20E (Notice of Garnishment)

Alongside Form 20P, you request Form 20E from the court clerk. The clerk reviews your calculations, and if everything checks out, issues the Notice of Garnishment. The court fee is $144.

Step 3: Serve the garnishment in the correct order

This sequence is mandatory under Rule 20.08:

1. Serve Form 20E on the employer (garnishee) first — by personal service, mail, or other permitted method
2. Serve Form 20E on the debtor within 5 days of completing service on the employer
3. File an Affidavit of Service (Form 8A) with the court proving service on both parties

Getting this order wrong — or serving the debtor before the employer — can invalidate the garnishment.

The 80% Wage Exemption

Section 7 of Ontario's Wages Act protects 80% of the debtor's net wages from garnishment. That means only 20% of net pay goes to satisfying your judgment.

Net wages means gross earnings minus mandatory statutory deductions:

• Income tax
• Canada Pension Plan (CPP) contributions
• Employment Insurance (EI) premiums

Discretionary deductions — union dues, RRSP contributions, gym memberships, savings plans — cannot be subtracted to reduce the garnishable amount. If an employer deducts $200 in voluntary RRSP contributions before calculating the garnishable amount, they're doing it wrong.

Example: A debtor earns $4,500 gross per month. After tax, CPP, and EI, their net pay is $3,600. The garnishable amount is 20% × $3,600 = $720 per month.

On a $10,000 judgment, that means roughly 14 months of garnishment to collect the full amount (not counting interest and costs).

The Exception: Support Orders

The 80% exemption applies to ordinary civil judgments. For support or maintenance orders (child support, spousal support), the exemption drops to 50% — meaning up to 50% of net wages can be garnished. Small Claims Court doesn't handle family law matters, so this exception rarely applies to your enforcement, but be aware of it if there's an existing support garnishment on the debtor that takes priority.

What the Employer Must Do

Once served with Form 20E, the employer must remit garnishable wages to the court clerk within 10 days after the wages become payable. It must file a Garnishee's Statement (Form 20F) within 10 days only if it wishes to dispute the garnishment or pays less than the amount shown in the notice. If the statement indicates that the debt is jointly owned, the employer must serve copies on you and the debtor.

If the employer admits the debtor works there, they must start deducting the garnishable amount from each pay period and remitting it to the court clerk. The clerk then distributes the funds to you.

If the employer fails to pay an amount it owes and does not file a required Form 20F, you can request an order against it under Rule 20.08(17), making the employer liable for the amount shown in the notice. This gets employer attention fast.

Variation Motions: Changing the 80% Threshold

Either party can apply to vary the standard 80% exemption:

• The debtor can argue under section 7(4) of the Wages Act that even 20% garnishment creates undue hardship — they can't pay rent, feed dependants, or meet basic needs. If successful, the court may reduce the garnishable percentage.
• You (the creditor) can argue under section 7(5) that the debtor's income is high enough to support a larger garnishment. Courts occasionally increase the garnishable amount above 20% for high-income debtors.

These motions require filing Form 15A ($127) and attending a hearing. They're worth pursuing only when the numbers justify it — a debtor earning $150,000 per year is a reasonable candidate for an increased garnishment order.

How Long Garnishment Runs

A wage garnishment stays active until one of three things happens:

1. The judgment is paid in full (you must serve a Notice of Termination of Garnishment, Form 20R)
2. The debtor leaves the employer
3. The notice expires 6 years after issuance unless renewed before expiry with Form 20E.1. A new notice issued more than 6 years after the judgment requires leave of court.

If the debtor changes jobs, you need a new Notice of Garnishment served on the new employer — which means another $144 filing fee and another round of service. The examination hearing (Form 20H) is your tool for discovering the new employer.

For the complete wage garnishment process with service templates and the interest calculation you need on Form 20P, see our Ontario judgment enforcement guide.

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