Write a short note on problems faced by workers of Informal sector

Question – Write a short note on problems faced by workers of Informal sector

Answer –

All the private sector establishments which employed less than 10 hired workers are called informal or unorganized sectors. For example-small farms, household industries, small enterprises, self-employed etc.

Problems faced by workers in informal sector are:

1. Workers who are engaged/ employed in the informal/ unorganized sector are known, informal workers.
2. These workers are not entitled to social security benefits such as provident fund, gratuity fund, pension etc.
3. These workers cannot form trade unions and do not have strong bargaining power.
4. Their rights are not protected by labour law so they are vulnerable to uncertainties of the market.

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