(1)An employer operating an earnings arrestment or a current maintenance arrestment or a conjoined arrestment order shall be entitled to apply regulations made under section 49(7), 53(3) or 63(6) of this Act before receiving intimation under section 49(8), 53(4) or 63(7) of this Act of the making of the regulations.
(2)Where a pay-day occurs within a period of 7 days after the date of—
(a)service on the employer of an earnings arrestment schedule or a current maintenance arrestment schedule or a copy of a conjoined arrestment order or of a variation thereof; or
(b)intimation under section 49(8), 53(4) or 63(7) of this Act to the employer of the making of regulations,
the employer shall be entitled, but shall not be required, on that day to operate the arrestment or order or, as the case may be, to give effect to the regulations.
(3)Where, in accordance with subsection (2) above, the employer on a pay-day (referred to below as “the previous pay-day”)—
(a)does not operate an earnings arrestment, current maintenance arrestment or conjoined arrestment order; or
(b)does not give effect to regulations,
he shall not include in any sum deducted from the net earnings of the debtor on a subsequent pay-day under the arrestment or order any sum in respect of the debtor’s net earnings on the previous pay-day.
(4)No claim may be made by—
(a)the debtor or the creditor against the employer in respect of any deduction which has, or ought to have, been made by the employer from the debtor’s net earnings, or any payment which has been, or ought to have been, made by him, under an earnings arrestment or a current maintenance arrestment; or
(b)the debtor, the sheriff clerk or any creditor against the employer in respect of any such deduction or payment which has been, or ought to have been, made under a conjoined arrestment order,
more than one year after the date when the deduction or payment has, or ought to have, been made.
(5)The employer shall not be liable to the debtor for any deduction made by him from the debtor’s net earnings—
(a)under an earnings arrestment unless and until he receives intimation—
(i)from the creditor under section 57(4) of this Act that the debt recoverable has been paid or otherwise extinguished or has ceased to be enforceable by diligence;
(ii)from the sheriff clerk under section 9(7)(b) or 50(1) of this Act that an order has been made recalling the arrestment or, as the case may be, declaring that it is invalid or has ceased to have effect;
(iii)that the debtor’s estate has been sequestrated; or
(iv)from the creditor that he has abandoned the arrestment;
(b)under a current maintenance arrestment unless and until he receives intimation—
(i)from the creditor under section 57(4) of this Act that the arrestment has ceased to have effect;
(ii)from the sheriff clerk under section 55(3) of this Act that an order has been made recalling the arrestment or declaring that the arrestment is invalid or has ceased to have effect;
(iii)that the debtor’s estate has been sequestrated; or
(iv)from the creditor that he has abandoned the arrestment.
Modifications etc. (not altering text)
C1S. 69(4)(5) applied (12.3.2008) by The Bankruptcy and Diligence etc. (Scotland) Act 2007 (Commencement No. 3, Savings and Transitionals) Order 2008 (S.S.I. 2008/115), art. 13