Deduction-from-Earnings Orders(DEO)

Deduction-from-Earnings Orders (DEO) are an order issued by a court in the UK which require an employer to deduct a certain amount from an employee’s wages to pay a debt. A DEO can only be issued in response to a court judgement, meaning that the debt must be legally enforceable. The purpose of the order is to ensure that the employee pays their debts in a timely manner and to prevent the debt from accumulating interest. A DEO can be issued for any debt, including rent arrears, council tax arrears and other debts owed to landlords or local authorities. The amount deducted from an employee’s wages is determined by the court and must not exceed the maximum amount allowed by law. The employer must then forward the payment to the relevant party. The scope of DEOs is limited to employees who are working in the UK, meaning that any non-UK resident employees are not subject to the order.