How would you distinguish between organised and unorganised sectors? Explain in your own words.

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Chapter 2

NCERT

Class 10

Economics

Solutions

3. How would you distinguish between organised and unorganised sectors? Explain in your own words.

Question:

How would you distinguish between organised and unorganised sectors? Explain in your own words.

Answer:

Basis of Difference	Organised Sector	Unorganised Sector
Meaning	The unorganized sector refers to those small and scattered units, which are often outside the state control.	Organized sector refers to that enterprise or place of work, where the duration of employment is regular and fixed.
Rules and Regulations	There are rules and regulations in this sector but they are not followed.	Government rules and regulations are followed in this sector.
Conditions of Employment	In this, the terms of employment are irregular.	In this, the terms of employment are regular.
Nature of Work	In this, the work is irregular and uncertain and the worker can be asked to leave the work at any time without any reason.	In this the work is continuous and the worker cannot be fired without any reason.
Wages	In this the labourers get daily wages.	In this, employees and laborers get monthly salaries regularly.
Work Duration	Here the working hours are not fixed. As well as there is no provision of payment for additional hours of work.	People here work only for fixed hours. If he works for more hours then extra payment is given by the employer for this.
Other Benefits	There is no system of benefits other than daily wages.	Apart from salary, employees also get other benefits, such as provident fund, medical allowances, paid leave, pension etc.
Working Conditions	The facilities of clean drinking water and safe environment are not available in this area.	The facilities of clean drinking water and safe environment are available in this area.

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