Question

Compare the employment conditions prevailing in organised and unorganised sectors.

Answer 1

Instructions: We will approach this question by comparing the prevalent employment conditions in organised and unorganised sectors

Solution: The organised sector is heavily regulated by the government through various laws such as Shops and Establishments Act, Payment of Gratuity Act, Minimum Wages Act, Factories Act, Companies Act, etc.

On the other hand, the unorganised sector is unregulated and thus, largely outside the control of the government.

In the organised sector, people have assured work and the terms of employment are regular. In the unorganised sector, jobs are not regular and are low-paid.

In the organised sector, workers are provided with various benefits such as provident fund, gratuity, paid leaves, etc. However, in the unorganised sector, workers have very few or no benefits at all regarding leaves, holidays, pension, gratuity, etc.