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Explain any five differences between organised and unorganised sectors.

Organised Sector

  • Organised sector covers those enterprises or places of work where the terms of employment are regular and therefore, people have assured work.
  • They are registered by the government and have to follow its rules and regulations which are given in various laws such as the Factories Act, Minimum Wages Act, Payment of Gratuity Act, Shops and Establishments Act etc.
  • has some formal processes and procedures. Some of these people may not be employed by anyone but may work on their own but they too have to register themselves with the government and follow the rules and regulations.
  • Workers in the organised sector enjoy security of employment. They are expected to work only a fixed number of hours. If they work more, they have to be paid overtime by the employer.
  • They also get several other benefits from the employers. What are these benefits? They get paid leave, payment during holidays, provident fund, gratuity etc. They are supposed to get medical benefits and, under the laws, the factory manager has to ensure facilities like drinking water and a safe working environment.
  • When they retire, these workers get pensions as well.

Unorganised Sector

  • characterised by small and scattered units which are largely outside the control of the government.
  • There are rules and regulations but these are not followed.
  • Jobs here are low-paid and often not regular.
  • There is no provision for overtime, paid leave, holidays, leave due to sickness etc.
  • Employment is not secure. People can be asked to leave without any reason.
  • When there is less work, such as during some seasons, some people may be asked to leave. A lot also depends on the whims of the employer.
  • This sector includes a large number of people who are employed on their own doing small jobs such as selling on the street or doing repair work.
  • Similarly, farmers work on their own and hire labourers as and when they require.
economic advancement economic development economic nationalism economy in india employment in India fresh industrial sector primary sector sectors of indian economy
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