The following PI & Clinical Negligence practice note provides comprehensive and up to date legal information covering:
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:
financial complexity eg in a claim for loss of profits by a member of a partnership
uncertainty eg in a claim where the claimant’s career path was uncertain or earnings were variable
evidential difficulty eg in the case of undeclared earnings
For claimants in steady work, the pre-accident net earnings are normally calculated by reference to the average 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 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 should normally be for earnings net of tax and national insurance contributions. However, the court may award loss of earnings free of tax if a claimant is not required to pay tax.
Calculating the average earnings based on the 13-week period before the accident is not always appropriate. It may, for example, not give a fair indication if
Free trials are only available to individuals based in the UK
Complete all the fields above to proceed to the next step.
**Trials are provided to all LexisPSL and LexisLibrary content, excluding Practice Compliance, Practice Management and Risk and Compliance, subscription packages are tailored to your specific needs. To discuss trialling these LexisPSL services please email customer service via our online form. Free trials are only available to individuals based in the UK. We may terminate this trial at any time or decide not to give a trial, for any reason. Trial includes one question to LexisAsk during the length of the trial.
To view the latest version of this document and thousands of others like it, sign-in to LexisPSL or register for a free trial.
Existing user? Sign-in
What is a public authority?There is no single, universal answer to the question whether a particular organisation is treated, in law, as a public authority.Rather, on one hand the courts have developed case law on which bodies are subject to administrative law through the judicial review procedure;
ECHR, art 5(4)—rights and dutiesThe scope of article 5(4) Article 5(4) of the European Convention of Human Rights (ECHR) provides that: 'Everyone who is deprived of his liberty by arrest or detention shall be entitled to take proceedings by which the lawfulness of his detention shall be decided
Sentencing fraud offences committed by individualsThe Sentencing Council (SC) has produced sentencing guidelines for fraud offences under the Fraud Act 2006 (fraud by false representation, fraud by failing to disclose information and fraud by abuse of position), false accounting under section 17 of
Qualified one-way costs shifting (QOCS)What is QOCS?Qualified one-way costs shifting (QOCS) was introduced on 1 April 2013 as part of the Jackson costs reforms following the removal of a claimant’s right to recover additional liabilities from the defendant, ie success fees and after the event (ATE)
0330 161 1234