Consider the characteristics of unorganised sector in India.

1. Small and scattered units.

2. No provision for overtime.

3. However, the employer can be sued if he wrongfully terminates his employee.

Which among the above is/are correct?

Question

Question

Answer 1

The correct answer is 1 and 2 only.

Key Points

The unorganized sector means an enterprise owned by individuals engaged in the production or sale of goods/services and where the enterprise employs workers, the number of such workers is less than ten.
The unorganised sector is characterised by-
- small and scattered units which are largely outside the control of the government.
- Jobs here are low-paid and often not regular.
- No provision for overtime, paid leave, holidays, leave due to sickness etc.
- Employment is not secured.
- The employer cannot be sued if he wrongfully terminates his employee. Hence, Statement 3 is NOT correct.

Additional Information

In the urban areas, unorganised sector comprises mainly of workers in small-scale industry, casual workers in construction, trade and transport etc., and those who work as street vendors, head load workers, garment makers, rag pickers etc.