Employer frustrated over duty to withhold wages for workers' debts

A Latvian entrepreneur running a forestry business has complained to LA.LV about the extra administrative burden placed on him by state regulations. Four of his employees currently have debts being pursued by bailiffs, meaning his company must withhold portions of their wages. He says the situation becomes especially complicated when a single employee has multiple debts, since he then has to figure out how to correctly split the withheld money among creditors.

The business owner stresses that he is only a third party in these debt disputes, yet he bears the extra workload and often faces resentment from employees who don't understand why money is being deducted from their pay. Additional costs arise because he uses outsourced accounting services, and his accountant wants extra payment for the added work. He also raised concerns about how to distinguish a genuine bailiff's letter from a potential scam.

Why the duty falls on employers

The Latvian Council of Sworn Bailiffs explains that an employer's obligation to withhold wages stems from the Civil Procedure Law. The reasoning is practical: since the employer calculates and pays out wages, it already holds all the necessary data on taxes, vacations and sick leave. Bailiffs, meanwhile, make procedural decisions, set the amount to be recovered and oversee compliance. The Justice Ministry adds that bailiffs are entitled to verify that withholdings are calculated and made correctly and on time.

No separate compensation for employers is provided for this work. However, the bailiffs' council notes that complaints from employers about the administrative burden are rare, and since October 2024 a simplified withholding procedure has been in place, which the Latvian Employers' Confederation has assessed positively.

How to avoid scammers

Employers can verify a bailiff's identity by checking the name and office contact details on the bailiffs' council's official website. Orders are typically sent to an official e-address or as a securely signed electronic document, and less often by post. In case of doubt, employers are advised to contact the bailiff's office directly using the officially listed contacts rather than those given in a suspicious letter. Suspected forgery should be reported to the police, though the council notes such cases are rare in practice. The Justice Ministry says it will continue evaluating whether the system can be simplified further.