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Differentiate between formal worker and informal …

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Differentiate between formal worker and informal workers .(3 mark)

    • Posted by Suman Sharma 4 years ago

    CBSE > Class 12 > Economics
    • 1 answers

    Sia ? 4 years ago

    Following table shows the distinction between a worker in formal sector and worker in the informal sector.

    Basis of distinction Formal sector worker Informal sector worker
    (i) Sector A worker in the formal sector works in organised sector i.e., public sector establishments and big and medium-sized private establishments A worker in the informal sector works in unorganised sector i.e., small-sized private establishments.
    (ii) Nature A worker in the formal sector is a regular worker because he is protected by various labour laws. A worker in the informal sector is a casual worker because he is not protected by labour laws and is subject to uncertainties.
    (iii) Status A worker in the formal sector is entitled to various rights such as social security benefits, trade union etc. A worker in the informal sector is not entitled to any rights.

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