The significance of research in loss of earnings claims in South Africa

Introduction: Why Employment Research Matters

In South Africa, thousands of people every year claim for loss of earnings after injuries sustained in road or rail accidents. These claims, often made against the Road Accident Fund (RAF) or the Passenger Rail Agency of South Africa (PRASA), rely heavily on accurate employment and income data. The goal is to determine how much income a person has lost, and will continue to lose due to their injuries.

However, this process is far from simple. Without thorough employment research, estimates of loss of earnings can easily become speculative or misleading. Sound evidence about a person’s work history, realistic career prospects, and the economic environment makes the difference between a fair settlement and an unfair one.

What Is Employment Research?

Employment research is the systematic collection and analysis of information about a claimant’s work background, education, skills, and industry prospects. It often includes:

• Verifying previous employment and earnings through payslips, contracts, or employer statements

• Examining national and regional wage data for the same occupation

• Analysing how age, qualifications, and injury severity affect employability

• Projecting future career development and likely earning capacity

Industrial Psychologists use this data to prepare reports that inform the court’s decision on the claimant’s loss of earnings.

Case Example 1: Road Accident Fund (RAF) Claims

Imagine a 38-year-old long-distance truck driver injured in a serious vehicle collision. His spinal injury prevents him from continuing long trips, forcing him to consider light-duty or short-haul work.

A thorough employment study would:

• Verify his past income using payslips and employer records

• Compare average earnings for heavy-duty and local drivers

• Assess how the injury limits his ability to perform essential job tasks

• Explore realistic re-employment or retraining opportunities in the transport sector

If research shows he can only work part-time or in lower-paying roles, this evidence directly supports a substantial loss-of-earnings claim. Conversely, if data shows a clear pathway to rehabilitation and re-employment, compensation would be adjusted accordingly. Either way, objective data replaces guesswork with accuracy.

Case Example 2: PRASA Injury Claims

PRASA claims often involve passengers or station workers injured during train incidents. Many of these claimants are employed in lower-income or semi-skilled sectors such as retail, cleaning, or security. Injuries that limit physical mobility may appear to end a person’s employability, but research can reveal alternative income options.

For example, a retail assistant injured on a train might no longer be able to stand for long periods but could still perform administrative or cashier duties. By investigating available positions, wage rates, and training options, employment research helps establish a realistic residual earning capacity — ensuring the claimant is neither over-compensated nor unfairly disadvantaged.

The Benefits of Thorough Employment Research

1. Accuracy and Fairness: Employment research ensures compensation reflects the real financial impact of an injury rather than assumptions.

2. Credibility in Court: Expert reports based on verified data and current labour trends hold more weight during legal proceedings.

3. Economic Context: South Africa’s job market varies across regions and sectors. Up-to-date research accounts for these local realities.

4. Future Planning for Claimants: Employment insights can guide rehabilitation, retraining, and job placement efforts, helping claimants rebuild their livelihoods.

The Risk of Poor or Incomplete Research

Inadequate research can undermine the credibility of an entire claim. Missing income records, unverified employment histories, or reliance on outdated wage data often lead to delays, disputes, or outright rejections.

Courts in South Africa have repeatedly questioned expert reports that fail to link their conclusions to real-world data. A claim that lacks verified employment information risks being viewed as speculative; reducing its strength and the claimant’s compensation.

Conclusion: Evidence Over Assumption

Loss of earnings claims are not about sympathy; they are about justice based on evidence. In RAF and PRASA matters alike, thorough employment research bridges the gap between injury and fair compensation. It ensures that every calculation, projection, and recommendation rests on real labour market evidence rather than guesswork. Ultimately, this process protects both claimants and insurers while strengthening the credibility of South Africa’s compensation system.

By Thomas Tsikai, an experienced Industrial Psychologist specialising in loss of earnings assessments at OCG Industrial Psychologists, with a portfolio of approximately 15,000 loss of earnings assessments throughout South Africa.