Section 13: Deduction from earnings orders: the liable person’s earnings
This section replaces paragraph (8) of Article 31 of the Order, and inserts a new paragraph (9). The intent of the change is to define what will be considered as ‘earnings’ for the purpose of deduction from earnings orders.
Article 31 of the Order concerns deduction from earnings orders, and the existing paragraph (8) provides that ‘earnings’ has such meaning as may be prescribed.
The definition in the new paragraph (8) will include the following as earnings:
wages or salary;
payments by way of pensions including any annuity payable for the purpose of providing a pension;
periodical payments which are compensation for loss of employment or reduced remuneration; and
statutory sick pay.
The impact of this change is that all pension payments, whether as a result of a private or occupational pension scheme, will be included as earnings for the purposes of deduction from earnings orders.
The new paragraph (9) sets out that for the purposes of Articles 31 and 32 of the Child Support (Northern Ireland) Order 1991, any person paying a sum covered by new paragraph (8) to a liable person should be treated as their ‘employer’.
