Loss of earnings claims play a crucial role in personal injury law, serving as a mechanism for individuals to seek compensation for income lost due to an injury or wrongful accident.

Whether resulting from a workplace accident, medical negligence, or other forms of personal injury, loss of earnings claims are essential for ensuring that victims can maintain their standard of living and meet financial obligations during their recovery period.

If you have suffered an injury that wasn’t your fault, you may be eligible to claim compensation for loss of earnings. If you would like more information on the process of making a compensation claim with one of our expert personal injury lawyers, then please do not hesitate to get in touch with us today.

What is a loss of earnings claim?

In the UK, a loss of earnings claim is a legal process through which individuals seek compensation for lost earnings due to an injury or incident that has impacted their ability to work.

This type of claim is commonly associated with personal injury cases, where the claimant has suffered physical harm due to another party’s negligence or wrongful actions. The objective of a loss of earnings claim is to ensure that the injured party is financially compensated for the wages they would have earned pre accident.

If your injury is particularly severe and it affects your ability to work in the future, you could be eligible to claim the disadvantage you have when seeking employment in the future. Similarly, if your ability to return to work remains uncertain when your case comes to trial, then you could pursue a claim for future loss of earnings compensation.

Evidence and documentation

To support a loss of earnings claim, the claimant must provide substantial evidence, which can include:

• Pay slips and employment contracts: Documentation showing regular earnings and employment terms.
• Tax returns and bank statements: Financial records that establish income patterns and losses.
• Medical reports: Detailed accounts of the injury and its impact on the claimant’s ability to work.
• Expert testimony: In some cases, vocational experts may be called to provide an assessment of the claimant’s ability to work and potential future earnings.

What types of compensation can be recovered in a loss of earnings claim?

In the UK, when making a loss of earnings claim, there are several types of compensation that individuals can seek to ensure they are adequately compensated for the financial impact of their injury or incident. These types of compensation can be broadly categorised into past loss of earnings, future loss of earnings, and associated financial losses. Here are the key types of compensation that can be claimed:

1. Past loss of earnings

Lost wages: Compensation for the actual income lost from the date of the injury to the date of the claim. This includes:

• Basic salary or wages
• Overtime payments
• Bonuses
• Commission

Sick pay: If the claimant received reduced sick pay instead of their full salary, they can claim the difference.

2. Future loss of earnings

Projected lost income: Compensation for future income that the claimant will lose because of their inability to return to their previous employment or reduced earning capacity. This takes into account:

• Potential career progression and salary increases
• Expected working life remaining

Reduced employability: If the injury affects the claimant’s ability to secure future employment or restricts them to lower-paying jobs, they can claim for the difference in potential earnings.

3. Associated financial losses

Loss of pension contributions: Compensation for lost contributions to pension schemes that would have been made by both the claimant and their employer during the period they are unable to work.

Loss of benefits: If the claimant has lost non-monetary benefits as a result of their inability to work, such as company car, health insurance, or other perks, they can claim for these losses.

4. Additional costs and expenses

Medical expenses: Costs incurred for medical treatment, rehabilitation, and ongoing care related to the injury.

Travel expenses: Travel costs associated with medical appointments, rehabilitation sessions, or other necessary travel due to the injury.

Home adaptations: Costs for modifying the home to accommodate any disabilities or limitations caused by the injury.

Care costs: If the claimant requires assistance with daily activities, they can claim for the cost of care, whether provided by a professional caregiver or a family member.

Will I be entitled to sick pay?

If you need to take time off work due to an accident, you may have the right to Statutory Sick Pay (SSP). Your employer may also agree to pay you for your time off for a specific period of time, depending on the terms of your contract.

You should always check with your employer to clarify any details and they may require sick notes from your GP to support your time off work – this will be required in most circumstances.

By claiming SSP, you can ask to be paid by your employer in full for the duration of your time off work. To claim SSP, you have to:

• Have carried out work for your employer
• Taken sick leave for over four full days in a row
• Earn on average £118 per week

You may be entitled to further benefits or other disability benefits if your injury is very severe. If you have been paid SSP, this will be taken into consideration when calculating your loss of earnings claim.

A loss of earnings claim can be included as part of a personal injury claim. You will need to provide copies of your wage slips for 3 months or 13 weeks prior to the accident in order to calculate the losses.

How are loss of earnings calculated?

After you have provided the evidence of the income you have lost as a result of an injury, the information will be used to calculate the amount you have missed out on.

Calculating your loss of earnings will be based on your monthly net earnings, net annual income, or net daily wages to calculate the total loss of income. It is also possible to recover any losses from any hours you regularly worked overtime. Any SSP or additional money paid (e.g. state benefits such as Universal Credit) to you will be deducted from your net earnings.

How can Beacon Law assist?

At Beacon Law, our team of personal injury solicitors are highly experienced and capable of assisting clients on loss of earnings claims. We work tirelessly to achieve the best outcome for our clients, continually providing a high standard of service.

To find out more about our no win, no fee claims funding and legal fees, please have a look at the funding section on our website.

If you have suffered an injury at the fault of someone else, then please call us today at 0330 1332 857 to start a no win, no fee basis claim or complete our contact form at the top of the page to request a call back from a member of our personal injury team.

Beacon Law are a Solicitors registered in England and Wales with our registered office based in Manchester. We are authorised and regulated by the Solicitors Regulation Authority.