On the basis of employment conditions, economic activities can be divided into two categories-

(i) Organized Sector : Those enterprises or workplaces come in the organized sector, where the duration of employment is regular. These sectors are registered by the government. They have to follow government rules and regulations. That's why it is called the organized sector. In this, the employees get the benefits of employment security. They are expected to work only for a certain period of time. If they work more than they are also given extra salary. They get leave including salary, payment during leave, provident fund, service grant all. They also get pension on retirement.

(ii)Unorganized Sector : The unorganized sector is a small and scattered unit. It is made from these. These units are mostly outside the government control. It does not follow the rules and regulations. There are low paying jobs here. and are often not regular. There is no provision for working overtime, leave with pay, holiday, sick leave etc. There is great uncertainty in employment. Workers can be removed from work without any reason. There is no protection in this employment and there is no profit.