Claiming for loss of earnings typically refers to the process of seeking compensation for income that you have lost due to an injury, accident, or other circumstances that were not your fault.
This could include wages or salary you would have earned if you were able to work but couldn’t due to the incident.
For example, if you were injured in a car accident caused by someone else’s negligence and as a result, you couldn’t work for a period of time, you might be entitled to claim compensation for the income you lost during that time.
In this article, we will give you a full guide to claiming for loss of earnings.
When can you make loss of earnings claims?
Loss of earnings claims can typically be made in various situations where you have suffered an injury, harm, or loss that has directly impacted your ability to work and earn income.
Some common scenarios where you might be able to make a loss of earnings claim include:
- Personal injury – If you’ve been injured in an accident that was someone else’s fault, such as a car accident, slip and fall, or workplace injury, and as a result, you couldn’t work and lost income, you may be able to claim for loss of earnings.
- Medical negligence – If you’ve experienced harm or injury due to medical malpractice or negligence, and this has affected your ability to work and earn income.
- Disability – If you’ve become disabled due to an accident, illness, or injury, and you’re unable to work or your earning capacity has been reduced, you may be able to claim for loss of future earnings.
- Employment discrimination – If you’ve experienced discrimination or wrongful termination at work, and this has resulted in a loss of income, you might be able to make a claim for loss of earnings as part of an employment discrimination lawsuit.
- Wrongful death – If a loved one has died due to someone else’s negligence or wrongdoing, and you depended on their income for financial support, you may be able to claim for loss of future earnings on behalf of the deceased person’s estate.
What losses can I claim?
The losses you can claim in a legal context depend on the specific circumstances of your case.
They can include various types of damages or losses that you have incurred as a result of someone else’s wrongful actions or negligence.
Some common types of losses that you may be able to claim include:
Medical expenses
This includes the cost of medical treatment, rehabilitation, medications, therapy, and any other healthcare-related expenses incurred as a result of the incident.
Loss of earnings
As discussed earlier, this refers to the income you have already lost because you were unable to work due to the incident.
It can also include benefits, bonuses, and other forms of compensation you would have received if you were able to work.
Future loss of earnings
This accounts for the income or earning capacity you are likely to lose in the future as a result of the incident, including projected future earnings, benefits, and career advancement opportunities.
Pain and suffering
This encompasses the physical pain, emotional distress, and mental anguish you have experienced due to the incident.
Pain and suffering damages aim to compensate you for the non-economic impact of the injury on your quality of life.
Loss of enjoyment of life
This compensates you for the loss of ability to engage in activities or hobbies you enjoyed before the incident, as well as any limitations on your lifestyle or daily activities caused by the injury.
Property damage
If your property, such as your vehicle or personal belongings, was damaged as a result of the incident, you may be able to claim the cost of repairing or replacing the damaged property.
What’s the difference between loss of earnings and future loss?
While loss of earnings addresses past financial losses, future loss accounts for ongoing and prospective impacts on income and earning potential.
Both are critical components in assessing the full extent of damages and providing appropriate compensation to those affected by wrongful actions or negligence.
How is future loss of earnings calculated in a personal injury claim?
There is a specific approach that has been developed by the courts for computing lump sums for future losses, aiming to consider potential life variables.
This method entails determining the “multiplicand,” representing the Claimant’s annual net loss.
Subsequently, the courts analyse the anticipated duration of the Claimant’s loss, adjusting it accordingly using the Ogden actuarial tables.
These tables factor in various elements like age, gender, life expectancy, and accelerated receipt.
They account for the circumstance where the Claimant receives a lump sum considerably earlier than the projected future loss, which can be invested for returns.
How Long do I have to claim for loss of earnings?
If you’re entitled to add a loss of earnings claim to your personal injury case, it’s essential to initiate legal action within the timeframe specified by the Limitation Act 1980.
Typically, you have three years from the date of the accident that resulted in your injuries to commence proceedings.
There are instances where this timeframe isn’t adhered to. They include:
- Mental capacity – You could gain an indefinite extension to the time limit if you are not able to make a claim due to a lack of mental capacity. If this is the case a court appointed litigation friend can make the claim on your behalf. If you make a recovery then you’ll have 3 years from your recovery date to make a claim if a claim was not made on your behalf.
- Under 18 – If you are under the age of 18 then your time limit will be paused until you reach 18. You can also get a litigation friend to start proceedings before you are 18. If you do not make a claim before your 18th birthday then you have 3 years from that date to initiate legal proceedings.
How much could I claim for loss of earnings?
The amount you could claim for loss of earnings depends on various factors, including:
- The extent of your injuries.
- The impact on your ability to work.
- Your earnings before the injury.
- Potential future earnings.
To determine the potential amount you could claim, it’s crucial to consult with a legal expert such as Brown Turner Ross.
We can assess your case based on its specific circumstances and provide you with an estimation of the compensation you may be entitled to for loss of earnings.
It’s essential to document and provide evidence of your earnings both before and after the injury to support your claim effectively.
What can you claim for on top of loss of earnings?
In addition to loss of earnings, if you’ve suffered a personal injury, there are several other types of compensation you may be eligible to claim for in the UK. These can include:
General damages
This compensation covers the pain, suffering, and loss of amenity caused by the injury itself.
The amount awarded depends on the severity and long-term effects of the injury, as well as precedents set in similar cases.
Special damages
These are specific financial losses you’ve incurred as a result of the injury, beyond just loss of earnings.
They can include medical expenses (such as prescriptions, treatments, or rehabilitation), travel costs related to medical appointments, the cost of care or assistance, and any necessary home adaptations or equipment.
Can the self-employed claim loss of earnings?
Yes, self-employed individuals in the UK can claim for loss of earnings if they have suffered a personal injury that has affected their ability to work and earn income.
However, calculating loss of earnings for self-employed individuals can be more complex compared to those who are employed by a company, as it often involves assessing fluctuating income and business profits.
To support a claim for loss of earnings as a self-employed individual, it’s crucial to gather relevant documentation.
These include documents such as tax returns, invoices, contracts, and business records, to demonstrate your pre-injury earnings and the impact the injury has had on your ability to work and generate income.
You may need to provide evidence of how the injury has affected your ability to carry out your usual business activities and any resulting financial losses.
This could include details of cancelled contracts, missed opportunities, or reduced productivity due to the injury.
Loss of earnings compensation – Brown Turner Ross
When it comes to claiming for loss of earnings there are many factors to consider.
It is a process that needs to be considered carefully and it’s best to have the appropriate legal advice should you file a claim.
That is where Brown Turner Ross can help. We’re a family law firm that has been going for around 150 years.
We’ve got vast experience when it comes to claiming for a loss of earnings.
Our team of experts are on hand to help you during your claim and also assist in getting you the best outcome should you file for a claim.
Please contact us if you would like to find out more.