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Question

What is the difference between Organised sector and Unorganised sector?


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Solution

Answer:

The organized sector comprises certain companies or workplaces in which the employment term is regular and employees are also guaranteed employment. They are authorized by the government and must comply with the laws and regulations set out in various laws, including the Minimum Wages Act, Factories Act, the Gratuity Payment Act, the Shops and Establishments Act, and so on.

Examples of organized sectors

The following are the 4 organized sector examples:

  1. Government employees
  2. Government schools and colleges
  3. Registered industrial workers
  4. Banks

Examples of Unorganized sectors

The following are the 4 unorganized sector examples:

  1. Construction companies
  2. Hotel management
  3. Farming
  4. Domestic works

Difference between organized and unorganised sectors

The difference between organized and unorganised sectors are tabulated below.

Organised sector Unorganised sector
It is a sector where the employment terms are fixed and regular, and the employees get assured work. The unorganised sector is characterised by small and scattered units, which are largely outside the control of the government.
The job is regular and has fixed working hours. If people work more, they get paid for the overtime by the employer. Jobs are low-paid and often not regular.
Workers enjoy the security of employment. Employment is not secure. People can be asked to leave without any reason.
Employes will get medical and several other benefits. No benefits are available for the workers.
Examples: Government employees, registered industrial workers, etc. Examples: Shopkeeping, Farming, Domestic works, etc.

Articles to Explore:

  1. What is an organised sector?
  2. Compare the employment conditions prevailing in the organised and unorganised sectors.

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