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Why Unorganized Sector Is a Big Challenge for Labour Law in India?

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Task 1

Why unorganized sector is a big challenge for Labour law in India?

The unorganized sector is the sector where most of the people are engaged. Out of 450 million of total workforce the unorganized sector employees around 430 million people.  Majority of the workforce is in the unorganized sector, most of them remained in low-paid insecure jobs, have little access to institutionalized social security and are the most vulnerable to the negative impact of economic slowdown in terms of job loss and wages cut. The prominence of the unorganized sector is being growing according to latest  estimation of sub-commission of National Commission for Enterprise in the unorganized sector(NCEUS), the contribution of unorganized sector to GDP is about 50%  though there are many problems which are being faced by this particular sectors;

  • Insecurity of the jobs
  • Long hours of work
  • Poverty and indebtedness
  • Occupational hazards and health issues

 It needs special attention. The unorganized sector is nowhere an independent sector, it is being linked to or in many cases dependent on the organized sector.  The main reason for this could be lack of awareness and the poor educational background. Majorityof the workforce in this sectoris compelled to work in this condition because they are not being provided nay kind of training nor any educational support, and mainly this sector is highly neglected by other sectors in the economy. And the workforce does not raise their voice because of the fear of losing the job, as they have very less bargaining power.  Moreover the unorganized sector plays a pivotal role in the Indian economy, so it requires the special attention. To improve the condition of the workforce the government took a major initiative by introducing the Social Security Act, 2008. Wherein the creation of Social Security board at National and State level has been mandated. But this act only contain the availability of Social Security in the country, no where it talks about the legal binding on the part of government or the one who employees the people. It does not provide the benefit nor mention the minimum wages to be provided.

The working condition of the labour is not all the satisfactory in  India. Inspite of the major initiatives taken by the government it doesn’t improve the condition of the workforce it was just like providing the tiger without the tooth.  As well as the prevailing legislation nowhere talks about the unorganized sector specifically.

Task 2

  What are the mechanisms to increase the employability of the person?

The person whom I interacted with has failed to get good jobs because of his poor educational background; he has studied till 10th grade but failed to give the board examination. It is because along with his father he had to join for work at very small age because of some financial issues. So to increase his employability skills, he will have to first have to clear his 10th grade examination, which will later provide him the better job opportunities, as he can opt for any diploma courses for further studies. In today’s competitive environment, education is primary requirement, to seek a decent job. Moreover he can register himself with the skill India campaign(Skill India, next bread and butter for  rural India) was launched  on 15th July 2015, to impart various skill sets amongst the people of rural areas. This campaign also plans to reintroduce education for people who left school early in face of special night programmers and differential training. After he completes his education he can get the Apprenticeship training, which will definitely help him in increasing his employability.



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