Question

“Ram was employed for less than 10 days in a company. He does not get social security benefits.”
Identify and explain the nature of employment indicated in the above text.

Hint:

Informal employment is widespread in developing economies like India. Formalizing such jobs can help improve workers’ quality of life and promote inclusive growth.

Answer 1

The nature of employment indicated in the given text is informal employment.

Explanation:

• Informal employment refers to work arrangements that are not regulated by formal contracts and often fall outside the scope of labor laws. These jobs usually do not offer job security, fixed wages, or benefits such as provident fund, paid leave, or health insurance.
• In the given scenario, Ram works for less than 10 days without receiving any social security benefits like PF or ESI. This is a clear sign that he is part of the unorganized or informal sector.
• Such employment is common in sectors like construction, agriculture, small shops, and domestic work, where employers often avoid legal obligations to reduce costs.
• Workers in informal employment are more vulnerable to job loss, exploitation, and unsafe working conditions. They also lack access to skills training or legal mechanisms to resolve grievances.
• Moreover, informal employment is usually not captured in official statistics, making policy formulation and targeted welfare measures more difficult for the government.

Conclusion:
Informal employment, though widespread in developing countries like India, reflects economic insecurity and limited access to opportunities. It is important to bring such workers under formal coverage through better labor policies, skill development, and social protection schemes.