Injuries are not the only negative effects of an accident. Loss of earnings can also have a dramatic impact on the lives of victims.
Faced with the dilemma of how to stave off financial difficulties, victims may well grapple with tremendous worry and stress, which could worsen their already precarious situation.
If you have recently found yourself in such a scenario, there is no reason for you to miss out on the earnings you would have received if it was not for the accident.
You can make a compensation claim for loss of earnings if someone else is responsible and in this guide you’ll find out: what information you need to help make your claim successful and answers to the most common questions people have when claiming. Plus, where you can find help to start your claim.
What Are Loss Of Earnings?
When you make a compensation claim for injuries that were inflicted through no fault of yours, the following factors will determine your final compensation amount:
General Damages:
This includes the effects of the injury that cannot easily be quantified, and they include pain, suffering, loss of amenity, mental trauma, stress, anguish, and other adverse effects of the injury on your quality of life.
Special Damages:
This covers the financial losses that you have accrued because of the injury and includes the following:
- Medical expenses e.g. physiotherapy, hospital tests, prescription costs and doctor’s consultation fees
- Loss of earnings, benefits related to work, and overtime (both present and future)
- Costs of adaptations made to home or car to assist movement
- Travel costs to meet medical appointments
Special damages cover all earnings you lost during the period you were too injured to work, and can cover future loss of earnings too where appropriate.
Future loss of earnings may be taken into account if the injuries you suffered mean you are unable to return to your previous duties, will be unable to work in the future, or earn the same salary level as prior to the injury.
Even so, your loss of earnings claim will only be for your net earnings.
In other words, you would only receive the amount you would normally get after your standard deductions, such as tax and national insurance. A major reason for this, is because this is the amount of income you would have received if you were not injured.
What Steps Should I Take To Help Ensure My Claim For Loss Of Earnings Is Successful?
There are a number of things you can do to help and strengthen your compensation claim for lost earnings, and they are given as follows:
Keep Your Payslips
Any payslips, correspondence or similar records you received during your employment absence should be stored in a safe place. When compensation is being calculated, they will help to determine the exact amount (if anything) you earned during your absence.
Collate Previous Payslips Or Invoices
You will need payslips or similar records that document how much you were earning before the accident happened.
These records should go back as far as 13 weeks before you were injured. This will help to accurately assess your earnings before the accident.
Record Your Days Off From Work
You need to keep an accurate record of the days you were absent from work. In your record, note down the times you attempted to return to work which did not go smoothly if relevant, and the days you only worked for a half-period or reduced hours.
Also, include any pre-booked holidays you missed out on because of your injuries.
Write Down The Impact On Your Career Progression
If your prolonged absence made you miss out on promotion, pay raises, or any expected career advancement, write them down as part of your records.
How did you expect your career to progress? Were you moving up to a pay scale before the injury happened? Were you taking any courses that would help you get a promotion?
The answers to these questions should be documented, to evidence if your future earnings potential has been negatively impacted by your injury.
Record Extra Payments
Keep records of any extra payments you received during your absence from work. These payments could be benefits or pensions. The courts might take this into consideration when your compensation is calculated.
Document Life After The Injuries
Write down how the injuries have affected your duties since you returned to work. Are your chances of promotion less likely than before? Do you no longer get overtime? Your answers will influence your final compensation amount.
Loss Of Earnings FAQ
1 How Much Compensation Will I Be Given?
Your loss of earnings compensation will depend entirely on your individual income and so there is no way to provide a definitive amount in this article.
It is worth noting that compensation for loss of earnings after only a very short absence from work may be relatively small.
However, for a prolonged absence, the compensation amount can be significant. This is because you are being compensated for ongoing losses and possibly for ones you will also incur in the future.
In any case, the size of your financial settlement should not deter you from filing a compensation claim for lost earnings.
2 Can I Ask For Compensation For Loss Of Pension?
You can be compensated for loss to your pension. But that depends on the condition that your long absence from work jeopardised and reduced the pension that you would have received if you were still working.
3 Can I Claim For Holiday And Sick Days?
If all your holiday or sick days were used up while you recuperated from your injuries, you may be entitled to get compensation for each of those days.
Your holiday and sick days are usually calculated as a daily salary that you have earned. Bonus days off and all national holidays are also included as part of your day’s salary.
So don’t feel guilty or uneasy about claiming compensation for them. You earned them as you worked, and you should not lose these days because of an incident that was not your fault.
4 Can I Also Claim For Loss Of Overtime Wages?
Yes. When it is time to determine your lost earnings, the courts will consider if you regularly worked overtime and received overtime wages.
However, you will have to prove that you would have had the chance to work overtime for the period that your injuries kept you at home.
5 I Am Self-employed – What Can I Do To File A Loss Of Earning Claim?
Filing a loss of earning claim if you are self-employed can be complicated. This is due to the erratic hours, inconsistent income, and the number of contracts/clients you work for at any one time.
But that does not mean it cannot be done.
You will first need to ask your accountant for evidence of your income, bank, and tax statements. This information will then be used to calculate the income you would have earned over the duration of time you could not work.
Also, to help the process, you can provide copies of invoices and clients’ orders you had to quit working on because of the injuries. Be aware that your accountant will have to supply about three years of your accounts, if you want your lost earnings or benefits to be calculated accurately.
6 Can I Claim For Future Loss Of Earnings?
Yes, you can claim for loss of future earnings if you can sufficiently prove that the injuries have interfered with your future ability to work.
Your doctor can give evidence as to when, or if, you are capable of returning to work. From the medical report, it should be straightforward to calculate how much you should get as compensation.
You could also claim, with proof, that the injuries prevented you from getting a pay rise or a deserved promotion. The progression of your colleagues’ career, as well as evidence from your employer, will be considered during the calculation of your lost earnings.
Would You Like Some Help With Your Loss Of Earnings Claim?
If you’re not quite sure where to start, or unsure if you have a valid claim, a team of experienced claims advisors are here to help you. Use our online form to schedule a free, no-obligation call to get the advice you need to start your claim.
