How to Protect Workers in the Unorganised Sector?

By BYJU'S Exam Prep

Updated on: November 14th, 2023

Workers can be protected in unorganised sector by following the wages and working hours fixed by the government, providing loans for self-employed people, and basic needs like food, health, and education should be taken care the government. According to the Unorganized Workers’ Social Security Act of 2008, an unorganised worker is one who works from home, is self-employed, or earns a wage in the unorganised sector.

Protection of Workers in Unorganised Sectors

Sectors classified as unorganized lack regular set working hours and registration with the government. In this industry, rules and regulations from the government are not followed. Entry into such a sector is fairly simple due to the lack of affiliation or registration requirements. Because the unorganized sector is not regulated by the government, taxes are not collected.

For instance, the organized sector is subject to the Factories Act, Bonus Act, PF Act, Minimum Wages Act, and other statutes, but the unorganized sector is not covered by any of these laws. This sector includes small businesses and workshops with unskilled and unproductive workers.

Tactics for Protecting Employees in Unorganized Sector

Workers’ hours of employment are flexible. Additionally, they may have to work on Sundays and holidays. In comparison to the remuneration set by the government, they receive daily wages for their work.

The following are some tactics for protecting employees in the unorganized sector:

  • Government should set a minimum wage and the number of hours that people must labor.
  • The government may be able to offer loans to assist self-employed individuals.
  • The government should be responsible for providing necessities like food, health care, and education.

Four Instances of the Unorganised Sector

  1. Construction companies
  2. Hotel management
  3. Farming
  4. Domestic works


How to Protect Workers in the Unorganised Sector?

Workers in the unorganized sector can be safeguarded by abiding by the pay and working hours established by the government, lending money to those who are self-employed, and meeting their basic needs like food, healthcare, and education.

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