“Priya is an office employee with a regular monthly salary, provident fund, and other allowances, working from 9:30 a.m. to 5:30 p.m while Preeti is a daily wage laborer with no benefits formal employment letter who works from 7:30 am to 8:00 pm in a grocery shop.”

Analyze this example of Priya and Preeti and highlights the loopholes of the unorganized sector.



Answer by Student

Loopholes that exist in the unorganized sector are

  • In the unorganized sector, the workers do not have any job security and can be fired anytime when their superiors feel like it without any prior notice.
  • Their working hours are not fixed and they are not paid anything extra other than their pre-decided compensation.
  • No benefits such as provident fund, or paid leaves are given to them.
  • The working conditions might not always be safe and their demands or requests are usually ignored .

Detailed Answer by Teachoo

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Some of the loopholes that exist in the unorganized sector are:

  • Lack of job security : The workers in the unorganized sector do not have any assurance of employment or income. They can be dismissed or replaced at any time without any notice or compensation. They have no bargaining power or voice to demand fair treatment or justice.

  • Irregular working hours  and low wages : The workers in the unorganized sector are not paid according to their skills, qualifications, or productivity. They are often paid less than the minimum wages prescribed by the government or the market. They are also not paid regularly or timely and may face delays or deductions in their payments.

  • Absence of social security benefits : The workers in the unorganized sector do not enjoy any social security benefits such as provident fund, pension, health insurance, maternity leave, etc. They have to bear the risks and costs of illness, injury, old age, or death by themselves or their families. They also do not have any paid holidays, sick leaves, or overtime allowances.

  • Poor working conditions : The workers in the unorganized sector are exposed to various hazards and hardships in their workplaces. They may have to work in unsafe, unhealthy, or unhygienic environments, without proper ventilation, lighting, sanitation, or equipment. They may also have to work for long hours, without breaks or rest, and under stress or pressure.

    *Write any three points.
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Davneet Singh

Davneet Singh has done his B.Tech from Indian Institute of Technology, Kanpur. He has been teaching from the past 14 years. He provides courses for Maths, Science, Social Science, Physics, Chemistry, Computer Science at Teachoo.