Common issues
Claims for Loss of Earnings are common in Personal injury claims and are often the largest head of Damages. For guidance on future loss of earnings, see Practice Note: Future loss of earnings—personal injury claims.
While many are straightforward, typical complications include:
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financial complexity, eg in a claim for loss of profits by a member of a partnership
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uncertainty, eg in a claim where the claimant’s career path was uncertain or earnings were variable
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evidential difficulty, eg in the case of undeclared earnings
Calculating the net loss of earnings
13-week approach
For claimants in steady work, the pre-accident net earnings are normally calculated by reference to the average earnings over the last three months or 13 weeks preceding the accident.
The figures can be calculated from the claimant’s wage slips, although the claimant’s employer will generally provide the information. In the event of a dispute as to the level of pay, bank statements should be obtained as evidence of wages especially if payment is normally made by BACS.
The claim
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Jurisdiction(s):
United Kingdom
Related legal acts:
Key definition:
Loss definition
What does Loss mean?
The term 'loss' appears in many statutes and is not generally restricted to permanent deprivation.
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