Organised and Unorganised Sector


 
 
Concept Explanation
 

Organised and Unorganised Sector

Organised Sector: The organised sector covers those enterprises or places of work where the terms of employment are regular and people have assured work. It is called organised because it has some formal processes and procedures.

These enterprises are registered by the government and have to follow the rules and regulations framed by government under various laws like Factories Act, Minimum Wages Act, Payment of Gratuity Act, Employees' Provident Funds and Miscellaneous Provisions Act, Shops and Establishment Act etc.

Thus, workers in the organised sector have security of employment, work for a fixed number of hours and additional overtime wages if asked to work more. They get medical benefits and the management has to ensure facilities like clean drinking water and a safe working environment.

Some of these people may not be employed by anyone, but may work on their own but they too have to register themselves with the government and follow the rules and regulations. In some organisations, the workmen also get pension after retirement. They also get paid leave, payment for working on holidays and medical benefits.

Unorganised Sector: In contrast, the unorganised sector enterprises are not registered with the government. This sector characterised by small and scattered units which are largely outside the control of government and governmental rules and regulations are not followed. Workers get lower wages and there is no provision for overtime payment, paid holidays or paid leave due to sickness etc.

A large number of people doing jobs like street hawkers, repair workmen, domestic servants and similar other workmen come under unorganised sector in urban areas. In rural areas, unorganised sector comprises landless agricultural labourers, small and marginal farmers, share croppers and artisans (weavers, blacksmiths, carpenters,goldsmiths etc). Workmen can be asked to quit the job at any time without any reason being given and thus, employment is insecure. Casual workers and landless labourers in rural areas also fall in this category.

Protection of Workers in Unorganised Sector: The unorganised sector comprises mainly of workers who get irregular and low paid work, besides facing social discrimination. Their protection and supporting them is necessary for both economic and social equality.

Protection of unorganised sector workers can be accomplished through the following ways:-

  • We should develop alternative sources of employment  besides agriculture. For this purpose, other sections of the economy like power, finance, skill development and other infrastructure need to be developed.
  • Public works programme like construction of roads and school buildings, digging of irrigation canals and other similar work should be implemented in rural areas with a view to provide employment to rural workers throughout the year. However, these are short-term measures only.
  • Since the workers in the unorganised sector have no social security or job security, sincere efforts are required to provide them social, financial and required economical security. The government must provide them compulsory insurance either on marginal contribution or on a nominal contribution.
  •  

    Sample Questions
    (More Questions for each concept available in Login)
    Question : 1

    In India, large population is employed in :

    Right Option : B
    View Explanation
    Explanation
    Question : 2

    In Urban areas, unorganised sector comprises mainly of _________________

    Right Option : D
    View Explanation
    Explanation
    Question : 3

    In the rural areas, the unorganised sector mostly comprises of :

    Right Option : D
    View Explanation
    Explanation
    Chapters
    Constitutional Development in India
    Non-Constitutional Organisation
    Art, Architecture & Culture of India
    Pantings
    Theatre
    Dance
    Music
    The State Legislature
    Local Self Goverment
    Emergency Provisions
    Constitutional Organisation
    Union And Its Territory
    Structure of Indian Constitution
    Third Phase of National Movement
    Indian Struggle Against British Rule
    Constitutional Development of India
    Socio Religious Reforms
    Growth of British Paramountacy
    Post Mughal Period
    Irrigation System Of India
    National Income
    Inflation And Trade Cycles
    Poverty And Unemployment
    Infrastructure In India
    Sectors Of Indian Economy
    Economic Growth And Development
    Banking System In India
    Census of India 2011
    Windlife Conservation In India
    Architecture During Medivial India
    Major Industries In India
    Means Of Transport In India
    Natural Vegetation
    Agriculture In India
    The Physical Features Of India
    Soils In India
    Climate Of India
    Drainage System of India
    Advent Of The Europeans
    The State Executive
    Judiciary In India
    The Union Legislature
    The Union Executive
    Fundamental Rights and Duties
    Constituent Assembly
    Second Phase of National Movement
    First Phase of National Movement
    The Revolt Of 1857
    Election Commission Of India
    Lodhi Dynasty
    Mughal Empire And Beyond
    Tughlaq and Sayyid Dynasty
    Slave Dynasty
    Khilji Dynasty
    The Early Kingdoms
    The Mauryan Empire
    The Age Of The Guptas
    Chemistry In Everyday Life
    Administrative Structure of Delhi Sultanate
    Post Gupta Era
    Post Mauryan Period
    Religious Reform Movement
    Vedic Civilization
    Indus Valley Civilization
    Tissues In Organism
    Units And Dimensions
    Pre-Historic Period
    Environmental Studies
    Bio-Diversity
    Human And Regional Geography
    Fiscal And Monetary Policy In India
    Major Institutions
    Economic Planning Of India
    India - Size And Location
    Constitutional Amendments and Provisions
    Content / Category
    Class / Course
     
     


    Students / Parents Reviews [20]