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Organised & Unorganised Sector (Organised Sector (This sector includes…
Organised & Unorganised Sector
Organised Sector
This sector includes those places of work where people have assured work
These places of work are registered with the government follow rules and regulations of the government such as Factories Act, Minimum wages Act, Payment of Gratuity Act, Shops & Establishment Act etc
It is called organised as it has formal processes & procedures
Even people who work on their own have to register themselves with the government & follow rules & regulations
The workers in the organised sector have job security
They are expected to work for a fixed number of hours
If they work more, they have to be paid overtime by the employer
They also enjoy benefits such as paid leave, payment during holidays, provident fund, gratuity, medical benefits etc
Under the law, the factory manager has to provide safe drinking water and a safe working environment
When workers retire, they are paid pension
Unorganised Sector
It is outside the control of the government
Small & scattered units
Even though there are rules & regulations, these are not followed
Jobs are low paid & irregular
There is no overtime, paid leaves, holidays, leave due to sickness etc
No job security
Workers are asked to leave when there is less work - for eg: during certain seasons
Eg: Farmers hire workers as & when required
This sector includes a large number of people who work on their owns such as selling on the street or repair work