Given below are two statements:
Statement I: A family member who works in the family business without wages is not a hired worker.
Statement II: A private hotel with five hired workers and two family workers is a formal sector establishment.
In the light of the above statements, choose the correct answer from the options given below:
Answer & explanation
Correct answer: option 1
The correct answer is Option (1) → Statement I is true but Statement II is false.
Statement I: A family member who works in the family business without wages is not a hired worker. — True. A family worker works without receiving wages. Nobody pays him for his work, so he is not hired.
Statement II: A private hotel with five hired workers and two family workers is a formal sector establishment. — False. Only five of the workers are hired. A private establishment needs 10 or more hired workers to be in the formal sector.
NCERT (2026-27): Glossary: “Family labour/worker – A member who works without receiving wages in cash or in kind in a farm, an industry, business or trade conducted by the members of the family.” Glossary: “Formal Sector Establishments – All the public sector establishments and those private sector establishments which employ 10 or more hired workers.” “6.7 Informalisation of Indian Workforce … 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. …” |