How an Assignment Is Cancelled - Act Part 3, Section 24

Last updated on September 6, 2019

Contents:

Summary
Text of Legislation
Policy Interpretation
Related Information


Summary

This section explains how an employee cancels an assignment of wages. 


Text of Legislation

24. To cancel an assignment of wages, an employee must notify in writing

(a) the employer, and

(b) the person to whom the wages were assigned


Policy Interpretation

Cancellation of an assignment of wages must be in writing.

The responsibility is on the employee who has authorized a deduction from wages to cancel that authorization in writing when it is no longer required. The employee is required to notify both the employer and the creditor in writing.

If an employee fails to notify the employer in writing of the cancellation of the assignment, and the employer continues to make and remit the deduction, it is the employee's responsibility to sort out any resulting problems directly with the recipient of the funds.

Employees covered by a collective agreement

Section 3 provides that parties to a collective agreement may not negotiate terms and conditions that do not meet or exceed the standards set out in section 24. Where there is a collective agreement, the enforcement of matters relating to section 24 is through the grievance procedure, not through the enforcement provisions of the Act.