The organized sector refers to companies or workplaces in which the employment term is regular, and employees are guaranteed employment. They are authorized by the government and must comply with the laws and regulations set out in various laws, including the Minimum Wages Act, Factories Act, the Gratuity Payment Act, the Shops and Establishments Act, and so on. Examples of the organized sector include:

• Government employees
• Banks
• Registered industrial workers
• Government schools and colleges

On the other hand, the unorganized sector is characterized by small and scattered units, which are largely outside the control of the government. The job is irregular, and working hours are not fixed. People working in the unorganized sector are not guaranteed employment, and they do not have any employment protection. Examples of the unorganized sector include domestic workers, shopkeepers, street vendors, and small-scale industries.