On the basis of employment conditions, activities in the economy are classified into two main sectors: 1. Organised Sector
- This sector consists of enterprises or workplaces that are officially registered with the government and must adhere to government rules and regulations.
- Employment here is regular and secure, with workers receiving benefits such as job security, paid leave, provident fund, pension, and other social security measures.
- Employees typically have formal work contracts and are entitled to overtime pay and other employment protections.
- Examples include large companies, government departments, and registered businesses like Reliance or GAIL
2. Unorganised Sector
- This sector includes small, scattered units that largely operate outside government control and do not follow formal regulations.
- Employment is often irregular, with low wages, no job security, and absence of benefits such as paid leave or social security.
- Workers can be easily removed without notice or reason, and there is little protection for their rights.
- Common examples are landless agricultural laborers, sharecroppers, artisans in rural areas, and street vendors, casual construction workers, and small-scale industry workers in urban areas
This classification highlights the contrast in employment conditions, job security, and benefits between the organised and unorganised sectors within an economy.
