Off Work And Skint: How We Recover Your Loss of Earnings

We understand how important it is to have clarity when it comes to all the different parts of a claim.

Loss of earnings can be one of the hardest financial impacts after an accident, yet it can seem complicated.

This short guide explains what loss of earnings means, what you can claim for, and how to make sure your losses are properly evidenced.

Can I claim compensation for loss of earnings?

You can claim for loss of earnings if an injury has forced you to take time off work or reduced your potential ability to earn. You can make a claim if:

• The accident wasn’t your fault and occurred in the last three years
• Your injuries were caused by the accident
• You suffered financial losses as a result

What counts as loss of earnings?

A loss of earnings claim is based on net earnings. Loss of earnings in a personal injury claim covers:

• Your take-home pay after tax and NI
• Commission and tips
• Regularly earned overtime pay and bonuses
• Future earnings such as promotions or your pension, e.g., if you were forced to take a lower-paid role due to being significantly impaired after the accident.
• For self-employed people, it can cover lost profits, lost contracts, etc.

How can I prove loss of earnings?

Proving loss of earnings in a personal injury claim requires documented evidence of your income before and after the accident.

Types of evidence we look for:

• At least 3-6 months worth of payslips
• Your contract
• Records of absence such as sick notes, medical records, company sickness records, etc.
• For self-employed people, tax returns, income records, and your profit and loss accounts can be used.

How much can I claim for loss of earnings?

With personal injury, you can claim 100% of provable lost earnings.

The amount is decided based on your take-home pay after tax and NI. For an accurate calculation, especially with future losses or complex self-employment income, it’s best to consult with a personal injury solicitor.

Can you claim for loss of earnings if you get sick pay?

Yes, because a loss of earnings claim allows you to recover wages lost due to absence from work. Your solicitor has a duty to ensure all losses are recovered.

How much can I claim if I received sick pay?

Sick pay is taken off your compensation amount. This is because you would be paid twice for the same period of illness – once from your employer and then again in your claim. How much is taken off depends on the type of sick pay you received and how long you were off work for.

If you are paid Statutory Sick Pay (SSP):

If you only received SSP, this will be taken off your usual wage, and you can claim the difference.

Your solicitor will calculate the total loss of earnings, deduct any sick pay received, and ensure the final settlement accurately reflects your actual financial loss.

If you are paid Contractual Sick Pay (or sick pay from your employer):

Your employer might offer a sick pay scheme that is more generous than SSP.

Some people have a clause in their contract which says that contractual sick pay must be paid back to your employer if you win a compensation claim.

You will need to check your contract or ask your employer for more details.

If your contract has this clause, then the amount should be added to your claim.

For these reasons, it’s important that you contact a specialist personal injury solicitor. If this clause is missed, you could be out of pocket and owe your employer the full amount of the contractual sick pay you received whilst off.

How to claim loss of earnings when you’re self-employed?

You can still make a loss of earnings claim if you’re self-employed. You just need to prove your losses in a different way. Evidence we look for:

• HMRC tax returns, profit and loss accounts, business bank statements from 3 years before the accident to show income trends
• Records of lost work, e.g., cancelled appointments or contracts, invoices, diaries, emails – documentation that proves you lost income due to being injured
• For new businesses, bank statements, contracts and business plans can be used.
• Medical evidence is essential to prove you couldn’t work due to injury.

We highly recommend you contact a specialist personal injury solicitor if you are self-employed.

What steps to take when off sick due to an accident?

If you’re injured due to an accident, you can help prepare for your claim by:

• Telling your employer: Tell your employer immediately about the accident and your incapacity to work.
• Getting a sick note: Get a doctor’s note to prove you’re off sick.
• Gathering evidence: Gather your contract and at least 3 months of pay slips before your accident.
• Seeking advice: Contact a personal injury solicitor to make sure all losses are properly calculated.

Conclusion

Loss of earnings claims can feel complex, particularly when sick pay, self-employment or future income are involved.

We know it can seem like a lot, but with proper evidence and guidance from a solicitor, you can ensure that all aspects of your recovery will be properly accounted for – and you’re not left out of pocket because of an accident that wasn’t your fault.

If you or a loved one is suffering, don’t hesitate to contact us for support.

 

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• What Happens Next In Your Personal Injury Claim
• How Much Will I Get? And 9 Other Questions About Compensation
• Maximising Your Compensation: A Step by Step Guide
• FAQs