Q. 25 A5.0( 1 Vote )

Rohan works in a

Answer :

Rohan works in the organized sector and is therefore entitled to various kinds of benefits and allowances.

1. Workers in the organized sector enjoy security of employment. They are expected to work only a fixed no. of hours and incase of any overtime duty, they are to be paid extra. At the time of retirement, they are also awarded pensions.


2. Rohan as a bank clerk will also get paid leave, payment during holidays, provident fund, gratuity, etc along with medical benefits. Additionally, the employer in this sector, under the law, is expected to ensure facilities like clean drinking water and a safe working environment.


Sumit works in the unorganized sector and is therefore deprived of many benefits in comparison to the organized sector.


3. The unorganized sector is characterized by small and scattered units which are largely outside the control of the government. Although, there are certain rules and regulations they, unfortunately, are not followed.


4. Job insecurity is a major problem with no provision for overtime, paid leave, holidays or leave due to sickness. Additionally, the worker might be asked to leave at any point in time due to seasonal nature of work or according to the whims of the employer in this sector.


5. The organized sector, in comparison to the unorganized sector, offers better conditions of work and job security along with allowances for the benefit and well-being of its employees. However, the unorganized sector does not follow any rules or regulations that have been laid down by the government and therefore offers a seasonal, risky and insecure job.


NOTE – The activities in an economy can be classified into two categories –


1. Organized Sector – This sector consists of the registered enterprises (places of work) with the government. They provide regular terms of employment and follow the rules and regulations prescribed by the government - Eg- Factories Act, Minimum Wages Act etc. It is called ‘organized’ because it follows the formal processes and procedures.


2. Unorganized Sector – This sector consists of the enterprises (places of work) which do not follow any of the rules and regulations prescribed by the government. It is called ‘unorganized’ because it does not follow formal processes and procedures, leading to job insecurity.


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