Loss of trade compensation, in terms of worker’s comp, refer to compensation paid out to a worker that can no longer fulfill their work duties as a result of an accident. Trade compensation is a type of worker’s comp benefit to assist those in this specific case. But how exactly can an employer compensate you for a loss of ability? What exactly does that entail? Every case is different. But, depending on the details of yours, you may qualify. But first, let’s get familiar with them..
Loss of Trade Compensation: Payment for Permanent Injury
Take for example, an employee who suffers a back injury while working on a construction site. After going to therapy, he is able to regain most of his movement and strength back. But even after improving, the demands of his job are too high for the condition of his body. So, it’s time to find a new field of work. So, the worker must renovate his resume and begin fielding jobs. After countless applications, this person is able to accept an office job working as a customer sales representative. This job is much more suitable to the condition his back is now in. But, the salary is not quite as much as it might’ve been if he was able to keep his construction job.
In an instance such as this, that former employee might be able to receive those loss of trade compensation benefits. These benefits are designed to make up the difference in salary that may come when switching jobs due to injury. In the event that they physically must change their position, these benefits cover the loss in pay.
What Are the Guidelines?
These types of benefits are typically only for permanent situations. In short, if you will never be able to fulfill those old job requirements again, these benefits will be made available to you. The standard for these types of benefits, is the same 2/3 of your wage loss that we see in traditional worker’s comp claims. So, to make it simple: you will receive two-thirds of the difference between your previous salary and your current wages.
The thing to remember is that when you face injury on the job, you have options as for how to get back on your feet— and get back to the same level of financial stability that you had before the accident. Every case is different, as are your options. So, let’s explore them together and find the best result for you. A serious injury is difficult, as if fighting for benefits, but you don’t have to fight alone.