How to Claim for a Loss of Earnings

When you’re hurt in an accident, it’s not just your injury that you might be worried about. As you recover, you may need to take time off work.

But having to stop working – even for a short time – can have a serious impact on your finances. This is why it’s possible to make a loss of earnings claim when you make a personal injury compensation claim.

How does a loss of earnings claim work?

Compensation for personal injuries is separated into two categories: general damages and special damages. General damages are awarded for the pain and suffering your injury has caused, while special damages are awarded for any financial impact your accident has had on you.

As well as a loss of earnings, special damages cover any other financial expenses. This includes medical treatment, transport costs and replacing any items damaged in the accident. Special damages ensure that you are properly compensated for any effect an accident has on you.

Your loss of earnings claim will be submitted along with your injury compensation claim. You’ll receive your compensation in one payout – both for your injury and your financial losses. Your solicitor will help you work out what you might be entitled to claim for.

What can I claim for?

It’s not just the loss of earnings for your normal working hours that you can claim for. Many employees receive additional sources of income, alongside their basic rate of pay. The law has made allowances for this when making an injury claim.

You’re also entitled to claim for a loss of:

• Bonus
• Commission
• Overtime
• Pension contributions

It’s also possible to make a loss of earnings claim if you’re self-employed – but it can be more complex. You’ll need to prove that you were scheduled to carry out work when you were injured. Invoices, contracts and order forms will be useful in this case.

As a self-employed worker, you may also need to show your income for around three years to show what you were regularly earning.

What do I need to make a loss of earnings claim?

Evidence will generally be necessary. You’ll have to show how much you have lost out on in earnings and other income. This means it will usually be necessary to show that these additional losses would have otherwise been guaranteed.

Pay slips will be the best way of proving how much you were earning before your accident. You’ll typically have to submit between three and six months of pay slips from when you were able to work. This is particularly relevant if you work irregular hours each month.

You’ll also have to show that your injuries – whether physical or mental – were serious enough to make going to work impossible. A medical report will usually show how severe your injuries have been.

It’s also important to show that you’ve tried to get back to work as soon as possible. As an injury claimant, you’ll be required to show that you’ve tried to keep your losses to a minimum. This means returning to work as soon as you’ve able to – even if it was on reduced duties or hours – will be seen as a positive step during your claim.

Things to think about

Before you begin your claim, there are some thing to consider. Your solicitor will talk you through everything, but it can be helpful to think about these issues early in the process so you won’t be surprised by anything.

• Different work

You may have had to carry out different work after being injured. If this has resulted in your being paid less, you could be able to add this to your claim.

• Future loss of earnings

You could also claim for a future loss of earnings if you haven’t recovered by the time your claim is settled. Medical evidence will need to provide an expected length of recovery.

• Lost promotion

It may be possible to take a potential promotion or pay rise into account when claiming for loss of earnings. If you can show that this would have happened if you’d been working, you may be able to claim for these losses.

• Sick pay

If you receive any sick pay or state benefits, such as Universal Credit, these will be taken off the total amount of compensation you’re awarded for a loss of earnings.

To find out more about making a compensation claim after an injury that wasn’t your fault, just get in touch. Our claims advisors have helped thousands of people like you – and they’re ready to do the same for you.

Just give us a call or start your claim online.