Organised sector covers those enterprises or places of work where the terms of employment are regular and therefore, people have assured work. They are registered by the government and have to follow its rules and regulations which are given in various laws such as the Factories Act, Minimum Wages Act, Shops and Establishments Act etc. It is called organised sector because it has some formal processes and procedures. Workers in the organised sector enjoy security of employment. They are expected to work only for a fixed number of hours. If they work more, they have to be paid overtime by the employer. They also get several other benefits from the employers. They get paid leave, payment during holidays, provident fund etc. They are supposed to get medical benefits and under the laws, the employer has to ensure facilities like drinking water and a safe working environment. When they retire, many of these workersget pensions as well. People who work in the government or with companies or large establishments are all in the organised sector.

The unorganised sector is characterised by small and scattered units which have remained largely outside the control of the government. There are rules and regulations but these are not followed or enforced. Jobs here are low-paid and not regular. There is no provision for overtime, paid leave, holidays, leave due to sickness etc. Employment is not secure. People can be asked to leave without any reason. When there is less work during some seasons, some people may be asked to leave.Alot also depends on the whims of the employer or changes in the market situation.

Besides the above mentioned categories this sector includes a large number of people who are employed on their own – self employed.Almost half the workers are self employed. You would find them everywhere, doing small jobs such as selling in the streets or doing repair work or as hawkers. Similarly, farmers are largely self employed and also hire labourers as and when they require.

The organised sector offersjobs that are most sought-after. Butthe employment opportunities in the organised sector have been expanding very slowly.As a result, a large number of workers are forced to enter the unorganised sector jobs which pay a very low salary. They are often exploited and not paid a fair wage. Their earnings are low and not regular. When workers lose their jobs in the organised sector, they are forced to take up jobs in the unorganised sector with low earnings. Besides the need for more work, there is also a need for protection and support of the workers in the unorganised sector.

Who are these vulnerable people who need protection? In the rural areas, the unorganised sector mostly comprises of landless agricultural labourers, small and marginal farmers, sharecroppers and artisans (such as weavers, blacksmiths, carpenters and goldsmiths). Nearly 80 per cent of rural households in India are in small and marginal farmer category. These farmers need to be supported through adequate facilities for timely delivery of seeds, agricultural inputs, credit, storage