Chapter : 2. Sectors of the Indian Economy

Division of sector as organised and unorganised

Division of sector as organised and unorganised
1. Organised sector :
Organised sector covers those enterprises or places of work where the terms of employment are regular and therefore people have assured work. They are registered by the government and have to follow its rules and regulation which are given in various laws such as Factories Act, Minimum Wages Act, Payment of Gratuity Act, Shop and Establishment Act. etc.
Advantages of organised sector :
1. Workers in this sector enjoy security of employment.
2. They work only for fixed number of hours. If they work more, they have to be paid overtime by the employer.
3. They also get several other benefits from the employers like paid leave, payment during holidays, provident fund etc.
4. They also get several other benefits.
5. The workers working in organised sector also get pension after retirement.
Unorganised sector :
It is a sector which is not registered by the government. It is characterised by small and scattered units, which are largely outside the control of the government. There are rules and regulations but these are not followed.
Disadvantages of unorganised sector :
1. Workers working in unorganised get less wages.
2. There is no provision for overtime, paid leaves, holidays, leaves due to sickness etc.
3. Employment in subject to high degree of insecurity people can be asked to leave without any reason.
4. A large number of people doing small jobs come under unorganised sector.
5. Land-less and causal workers also comes under unorganised sector.
6. People working in unorganised sector are exploited.

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