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