All the public sector establishments and those private sector establishments which employ 10 hired workers or more are called ___________.
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → Formal sector establishments
All public sector establishments, and private sector establishments with 10 hired workers or more, are called formal sector establishments. Those who work in them are formal sector workers. All other enterprises and their workers form the informal sector.
NCERT (2026-27): “6.7 Informalisation of Indian Workforce … You may find that a small section of Indian workforce is getting regular income. The government, through its labour laws, enable them to protect their rights in various ways. This section of the workforce forms trade unions, bargains with employers for better wages and other social security measures. … To know this we classify workforce into two categories: workers in formal and informal sectors, which are also referred to as organised and unorganised sectors. All the public sector establishments and those private sector establishments which employ 10 hired workers or more are called formal sector establishments and those who work in such establishments are formal sector workers. All other enterprises and workers working in those enterprises form the informal sector.…” |