If you have suffered personal injury in an accident that wasn’t your fault and it caused you to take time off work, you may be worrying about the financial implications of an unscheduled absence from your workplace. You may be considering a personal injury claim against the person or organisation responsible for the accident or have already started the claims process and need clarification on what you can claim for.
This guide looks at how you can claim any earnings you lost due to the accident and how the loss of earnings claim is calculated.
Claiming damages
Compensation in a personal injury claim comes under two headings – general damages and special damages.
You claim general damages for the amount of pain and physical (and/or psychological) damage you experience as a result of the injuries you suffered in the accident.
Included in your claim for general damages will be a claim for loss of amenity, which is compensation for the adverse effect the injuries have on your everyday life, such as not being able to play sports, not being able to drive, and not being able to play with your children. Types of loss of amenity will differ according to the nature of the injuries you suffered.
Your special damages claim is your claim for any financial out-of-pocket expenses you have incurred due to the accident. For example, your special damages claim could include the cost of:
- Travelling expenses to medical appointments
- Prescription charges
- Cost of any treatment you have undergone (such as physiotherapy)
- Reimbursement of lost earnings and overtime
- Damage to personal property damages in the accident
To maximise your chances of reclaiming as many items of special damage as possible, you should support each item with evidence such as receipts for painkillers, invoices from treatment providers and payslips for your loss of earnings and overtime. If you’ve suffered serious or life-changing injuries in an accident caused by another party, your loss of earnings claim could be substantial in its own right.
Loss of Earnings Claim
You may lose earnings if your injuries cause you to take time off work. You are entitled to claim back the loss of earnings as long as the losses claimed are reasonable in the amount you claim and the length of time you claim for.
As the person bringing the claim, it’s down to you to prove your loss.
Someone employs you if they pay you a monthly net salary after deducting tax, national insurance, pension contribution, etc.
To prove your loss, you will need to produce copies of your payslips from before the accident date. A Court will usually take your net average monthly salary for thirteen weeks prior to the accident as the starting point for working out your loss of earnings.
You might be entitled to claim for loss of overtime. To do this, you must demonstrate that your employer would have offered you overtime had you not been unable to work because of your injuries. You would also need to prove that they regularly offered you overtime in the months preceding the accident and that you worked that overtime.
For self-employed claimants, proving loss of earnings is often a more complex process. You’ll probably need to provide some or all of the following:
- Tax returns for the past 3 years
- Business accounts
- Proof of cancelled contracts or missed work opportunities due to your injury
If you are considering making anything more than a minimal loss of earnings claim, it is a good idea to get your accountant or bookkeeper involved to help you prove your loss.
How to Calculate Loss of Earnings
Below is an example of how to work out loss of earnings in a very straightforward claim:
| Month | Net wages per wage slip | Net annual income based on average wage | Net daily wage based on 5 day week | Number of days absent due to injury | Net loss of income |
| July 2024 | £2,500.00 | £30,708.00 (£2,559 x 12 months) | £118.10 (£30,708.00/52 weeks/5 days) | EG 13 days (Per company sickness record) | £1,534.00 (13 days absent x £118.10) |
| August 2024 | £2637.00 | ||||
| September 20243 | £2,540.00 | ||||
| Average monthly wage (sum of net wages / 3) | £2,559.00 | ||||
The medical evidence of an experienced medico-legal expert (doctor) must support your claim that you could not work for the period for which you claim loss of earnings. You must mitigate your losses by not claiming more loss of earnings than you are entitled to.
Practical Advice for Claimants
- Document Everything: Ensure you keep detailed records of all absences from work and any financial losses incurred.
- Have Medical Evidence in Place to Support Your Loss of Earnings Claim: Ensure you have medical reports confirming that the period for which you claim loss of earnings was reasonable, given the nature and severity of your injuries.
- Mitigate Your Losses: You must mitigate your losses, which includes returning to work when you are fit to do so.
- Consider Future Impact: If your injury might affect your future earning capacity, discuss this with your solicitor. You may be entitled to claim for future loss of earnings if medical evidence supports your claim that your earning capacity has been reduced.
Common FAQs about Loss of Earnings Claims
Q: Can I claim for lost overtime?
A: Yes, as long as you can prove that overtime would have been available and that you regularly worked it before the accident.
Q: What if I’m on a zero-hours contract?
A: You can still claim, but you’ll need to provide evidence of your typical working hours and how much net pay you take home on average. Your solicitor will be able to help with advice and practical assistance.
Q: How long do I have to make a claim?
A: In most cases, you have three years from the date of the accident to bring legal proceedings.
Q: Will my employer be involved in the claim?
A: They may be asked to provide information about your employment and earnings, but the claim is brought against the party responsible for your injury. Of course, if your claim is for an accident at work, the claim will be against your employer. However, they are still obliged to provide details of your earnings loss upon request.
Q: What if I’ve only been paid Statutory Sick Pay while off work? Can I claim for loss of earnings?
It’s rare not to receive any money while you are off work. Even if your employer has a policy of not paying employees whilst off sick, you would expect to receive SSP, Statutory Sick Pay. However, you can still claim for loss of earnings, although upon settlement of your claim or if you win in court, you will receive your net loss of earnings, less any SSP that you have already received.
Conclusion
Claiming loss of earnings as part of a personal injury claim can sometimes be relatively easy and equally complex at other times. Either way, it’s an integral part of your personal injury claim following an accident that wasn’t your fault.
While this brief guide provides an overview of claiming back the losses incurred due to an accident, every personal injury case has its unique circumstance. To get the best advice tailored to your specific accident circumstances, you should consult an experienced personal injury solicitor.
If you call Mooneerams Solicitors on 029 2048 3615, you’ll get to speak with an experienced personal injury lawyer from the outset.
The team at Mooneerams are friendly and empathetic, and they’ll quickly put you at ease. They’ll give you clear advice in plain English, with no obligation to take the matter further if you don’t want to. Whether you decide to pursue a claim will be entirely up to you.
Mooneerams Solicitors handles most personal injury claims, including claims for loss of earnings, on a No Win No Fee basis.