16. Compare the employment conditions prevailing in the organised and ...
Employment conditions in the Organised and Unorganised Sectors:
The employment conditions prevailing in the organised and unorganised sectors differ significantly. The organised sector refers to those industries and establishments that are registered and regulated by the government, while the unorganised sector comprises of small-scale enterprises and informal employment arrangements that lack formal registration and regulation. Let's examine the differences in their employment conditions:
1. Job Security:
- Organised Sector: Employees in the organised sector generally enjoy better job security due to the existence of formal employment contracts, legal protections, and the presence of trade unions that advocate for their rights.
- Unorganised Sector: Job security is relatively low in the unorganised sector as workers are often hired on a daily wage basis or as contractual employees. They lack legal protections, making it easier for employers to terminate their employment without repercussions.
2. Working Hours and Wages:
- Organised Sector: Employees in the organised sector typically work fixed hours and receive regular salaries or wages. They are entitled to overtime pay for working beyond the stipulated hours.
- Unorganised Sector: Working hours in the unorganised sector are often long and irregular. Workers are paid on a piece-rate basis or daily wages, which are often lower than the minimum wage. Overtime compensation is rare, and there is a lack of social security benefits.
3. Social Security and Benefits:
- Organised Sector: Employees in the organised sector are entitled to various social security benefits such as provident fund, employee state insurance, gratuity, pension, and healthcare benefits. They also have access to formal channels for grievance redressal.
- Unorganised Sector: Social security coverage is minimal in the unorganised sector. Workers are typically excluded from formal social security schemes, leaving them vulnerable to financial hardships in case of illness, injury, or old age. They also lack access to grievance redressal mechanisms.
4. Skill Enhancement and Training:
- Organised Sector: The organised sector usually offers opportunities for skill enhancement and training to its employees. Companies invest in training programs to improve the productivity and efficiency of their workforce.
- Unorganised Sector: Skill development initiatives are relatively limited in the unorganised sector. Workers often have to rely on their existing skills or learn on the job without formal training, hindering their career growth prospects.
In conclusion, the employment conditions in the organised sector are generally more favorable compared to the unorganised sector. The organised sector provides better job security, regulated working hours, higher wages, social security benefits, and opportunities for skill enhancement. On the other hand, the unorganised sector suffers from the absence of formal employment contracts, low wages, lack of social security, and limited access to training and career advancement opportunities.
16. Compare the employment conditions prevailing in the organised and ...
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