Unorganised sector is the sector that comprises of small scale enterprises or units. Moreover, these sectors are not registered with the government. These units are scattered which are largely outside the control of the government. Though there are rules and regulations these are never followed here. For example, casual workers in construction, roadside business, shops etc. Workers in unorganised sectors are often exploited and not paid a fair wage. Their jobs are not secure.
On the other hand, the organised sector includes all those enterprises and organisations with regular terms of employment. People have assured work registered by the government. They have to follow many rules and regulations included in different laws and rules including the Factories Act, Minimum Wages Act, Payment of Gratuity Act and Shops and Establishments Act.
Organised sector is better than unorganised sector in terms of employment and working conditions. There are many problems while working in the unorganised sector. In the organised sector, security of employment is entitled to all the workers. They have fixed working hours and can have the benefits and allowances for working overtime. They also get paid leave, holiday allowances, medical allowances, provident fund, and gratuity. All basic facilities like drinking water and a safe working environment should be given to them under the legal rules and regulations. In contrast, workers in the unorganised sector are low-paid and are not regular employees. They have no facility for overtime allowances, paid leave, sick leave and other allowances. Generally, workers in unorganised sectors are often exploited and not paid a fair wage. Thus, the organised sector is better than the unorganised sector.