Correct Option
The correct option is 1 only
Explanation
The Indian economy is classified into organised and unorganised sectors based on employment conditions and adherence to regulations. The organised sector covers enterprises where the terms of employment are regular, and the establishment is registered with the government, ensuring compliance with various labor laws.
Statement-wise Analysis
- Statement 1 is Correct: The organised sector is defined by its formal structure. Establishments in this sector are registered by the government and must follow rules and regulations such as the Factories Act, Minimum Wages Act, and Payment of Gratuity Act. Consequently, workers enjoy security of employment and legal protection of their rights.
- Statement 2 is Incorrect: Workers in the organised sector typically enjoy benefits such as paid leave, payment during holidays, provident fund (PF), and medical benefits. It is the unorganised sector where workers are generally denied these social security benefits and job security.
- Statement 3 is Incorrect: The organised sector has not stopped hiring on a contract basis. On the contrary, there is a growing trend of "informalization of the formal sector," where organised enterprises increasingly hire contract laborers to reduce costs and bypass stringent labor regulations regarding permanent employees.
Key Takeaway: The primary distinction of the organised sector is its adherence to government rules, registration, and the provision of job security and social benefits to workers, unlike the unorganised sector.