Question

advantages and Disadvantages of the Informal sector

Answer 1

Advantages

# Employees may be paid well without tax deductions because the company owner does not have tax obligations.

# The employer and employee will often share a very close personal relationship. This makes it possible for the employee to easily have his needs met such as taking a day off work.

# The grievance of employees with respect to personnel issues are attended to really fast either by the employer directly or another senior manager.

Disadvantages  

# The job security is very less. So, in the event of poor turnover by the company, the employee’s job can be at stake.

# The employee is not likely to receive corporate benefits like insurance or other benefits associated with labor laws.

# There may be no fixed hours and so the employee may be required to come for work at odd times of the day.