Compare the employment conditions prevailing in the organised and unorganised sectors.

Employment Conditions in Unorganised Sector

  • The unorganised sector is largely outside the control of the government and it is characterised by scattered and small units.
  • Although regulations and rules do exist, they are not followed.
  • Jobs in the unorganized sector are not regular and are low-paid.
  • In the unorganized sector, there is no provision for leave due to sickness, holidays, paid leave, overtime, paid leave, etc.
  • Security of employment does not exist in the unorganised sector.
  • In the unorganized sector, as per the whims of the employer or when there is less work, during some seasons, some people may be asked to leave.
  • In the unorganized sector, people can also be asked to leave without any reason.
  • A large number of people are employed on their own doing small jobs such as doing repair work or selling on the street in an unorganized sector.
  • As per requirements, farmers hire labourers or they work on their own.

Employment Conditions in Organised Sector

  • Organised sector covers those enterprises in which people have assured work, and the terms of employment are regular.
  • They are registered by the government and have to follow its rules and regulations which are given in various laws such as the Shops and Establishments Act, Payment of Gratuity Act, Minimum Wages Act, Factories Act etc.
  • It is called organised because there are some formal procedures and processes that need to be followed.
  • Some of these people may work on their own and may not be employed by anyone yet they have to register themselves with the government and follow the given regulations and rules.
  • Security of employment is given to the workers in the organised sector.
  • If workers are made to work more, they have to be paid overtime by the employer. Usually employees are only expected to work for a fixed number of hours.
  • Employees are provided with several other benefits by the employers.
  • Employees in the organised sector will be given gratuity, provident fund, payment during holidays, paid leaves etc.
  • In the organised sector, as per law, the employees must be provided with a safe working environment, drinking water facilities should be ensured by factory managers, and workers should be given medical benefits.
  • Pensions will be provided to workers when they retire.

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