Things Covered by a Claim: Loss of Earnings

After suffering a personal injury at the hands of someone else’s negligence a lot of people are left suffering and out of work. Serious injuries can take a lot of time to get over and although a lot of people will claim some form of compensation for their suffering, a lot of the time they don’t realise that they could also claim for other types of suffering, including loss of earnings.

The compensation that people receive because of a personal injury that they have suffered is known as general damages. However, some people can also claim for special damages; these cover loss of earnings and other financial losses that are a direct result of the injury.

Loss of earning comes under the heading of ‘special damages’. If your injury causes you to need time away from work then you will consequently lose your earnings.

If you’re claiming against personal injury then there’s a good chance that you could be entitled to claim back the money that you’ve lost on earnings, travel and prescription charges. However, in order to do this, you’ll need to gather relevant evidence, like pay slips, to support your claim.

Relevant evidence

The evidence that you will need to provide will depend entirely on the nature of your claim. If you’re claiming for travel costs then transport tickets and car parking tickets should be kept as a record. These can then be photocopied and sent as proof of your losses.

If you’re seeking damages for loss of earnings then you’ll be required to produce pay slips for a period of time prior to your injury in order to prove your income and what you would have been paid should you have been at able to work as usual. Claiming for lost overtime is a little more complicated and will require proof that you regularly completed overtime in the months leading up to your accident. You will also be required to prove that the overtime would have been available for you to do in the time that you have been off work in order for your claim to be successful.

How is it calculated?

Generally, when claiming loss of earnings, you’ll be asked to provide pay slips for a minimum of three months before you incurred your injury, so that the amount of pay that you have lost can be worked out accordingly.

Your losses will be worked out based on the post-tax figure that you would have received if you had been fit to work. This sum will then be multiplied by your period of absence in order to calculate an accurate sum of your loss of earnings as a direct result of your injury.

Claiming loss of earnings if you’re self employed

As someone who is self-employed or a business owner, unfortunately the process is much more complicated. If you do fit into this category then you should have someone managing your accounts, in which case you should inform them of your inability to work as soon as possible.

You should ask them to keep up to date records of any contracts, invoices and other processes that could not be honoured due to your absence. You will also need to obtain details of the company’s profits and losses for at least three years prior to your accident.

Minimising losses

Regardless of your employment status – employee, self-employed, business owner etc. – you have a duty to minimise the losses that you suffer. This means that you must return to work as soon as you are able in order to be able to claim the complete sum of your losses. Failure to return to work as soon as you are fit to do so could result in a massive reduction to the amount that you are owed.

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