The organised sector offers jobs that are the most sought-after, whereas the unorganised sector is characterised by small and scattered units which are largely outside the control of the government.

In the organised sector, rules and regulations are followed to protect labourers. In contrast, while rules exist in the unorganised sector, they are often not followed. Jobs in the organised sector are regular, but in the unorganised sector, jobs are low-paid and often not regular. Employment here is not secure, and people can be asked to leave without any reason or based on the whims of the employer.

Regarding benefits, the organised sector provides provisions for overtime, paid leave, holidays, and leave due to sickness. However, the unorganised sector has no such provisions. Workers in this sector are often exploited, not paid a fair wage, and their earnings are low.

Finally, there is a social dimension to employment conditions. Majority of workers from scheduled castes, tribes, and backward communities find themselves in the unorganised sector, where they face social discrimination along with irregular work. Since the 1990s, many workers losing jobs in the organised sector have been forced to enter the unorganised sector, highlighting the need for protection and support.