Page 42 - Understanding Economics for Class 10

Organised Sector:
 Organised Sector covers those enterprises or places of work where the terms of employment
are regular and therefore, people have assured work.
 It is called organised because it has some formal processes and procedures like: they are
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registered by the government and have to follow rules and regulations given by various
laws such as the Factories Act, Minimum Wages Act, Payment of Gratuity Act, Shops
and Establishments Act etc.
 Some of these people may not be employed by anyone but may work on their own
but they too have to register themselves with the government and follow the rules and
regulations.
 Workers gets security of employment. They are expected to work only a fixed number
of hours. If they work more, they have to be paid overtime by the employer.
 Besides regular salary, several other benefits from the employers are also provided
to those who are working under this sector like paid leave, payment during holidays,
provident fund, gratuity, other facilities like medical benefits, insurance; and, under the
laws, facilities like drinking water and a safe working environment has to be ensured by
the factory manager. When they retire, these workers get pensions as well.
Unorganised Sector:
 It has small and scattered units which are largely outside the control of the government.

 There are rules and regulations but these are not followed.
 Jobs here are low-paid and often not regular.
 There is no provision for overtime, paid leave, holidays, leave due to sickness etc.
 No job security is there. People can be asked to leave without any reason. Here workers
are hired and fired at will.
 This sector includes a large number of people who are employed on their own doing
small jobs such as selling on the street or doing repair work, farmers working on their
own and hire labourers as and when they require.

Let’s Work these out (Page No. 31)

1. Look at the following examples. Which of these are unorganised sector activities?
(i) A teacher taking classes in a school
(ii) A headload worker carrying a bag of cement on his back in a market
(iii) A farmer irrigating her field
(iv) A doctor in a hospital treating a patient
(v) A daily wage labourer working under a contractor
(vi) A factory worker going to work in a big factory
(vii) A handloom weaver working in her house

Ans. Organised Sector Unorganised Sector
A teacher taking classes in a school. A headload worker carrying a bag of
cement on his back in a market.
A doctor in a hospital treating a patient. A farmer irrigating her field.
A factory worker going to work in a big A daily wage labourer working under a
factory. contractor. A handloom weaver working
in her house.

Economics Class X E-33