Which of the following describes the mechanism of compensating injured employees?

The mechanism of compensating injured employees, particularly in the context of workers' compensation laws, often involves determining benefits through a fair evaluation that takes into account both the wages of the employee and the extent of the injury incurred. This method ensures that the compensation is tailored to appropriately reflect the economic impact of the injury on the employee, considering their lost wages and the severity of the injury. Such evaluations may include factors like the employee's salary, the duration of recovery, and the medical costs associated with the injury.

In contrast, a fixed percentage of the last month's salary does not take into account variations in individual circumstances, making it less fair. Similarly, a balance of unpaid medical costs might not provide sufficient compensation for lost income or pain and suffering. Offering a flat-rate compensation for all injuries could lead to significant disparities, as it overlooks the individuality of each case, which can result in either excessive compensation for minor injuries or inadequate compensation for severe ones. By focusing on a fair evaluation, the compensation mechanism aims to deliver justice and equity for injured employees.