Discuss the problems of casualisation and informalisation of workforce in India?
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Some Companies in India employ casual employees. Sometimes, workers are also taken through labour contractors. In both these cases there is no binding relationship between the the employing firm and the workforce, thus statutory benefits like superannuation, provident fund, gratuity etc do not accrue for the employees. Besides, laying off workers is quite easy for the employers; so, there is no permanency of employment nor guaranteed long-term and regular income. This kind of thing is quite prevalent in America, but there is adequate social security to cushion off the distressful period. In a country like India, however, it is a social problem.
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The informalisation of the workforce in India refers to the decrease of workforce from the formal sectors due to competition or maybe because of strictness of the labor laws. There is an increase of the informal sector.
In the recent years, India has witnessed an unprecedented shift of the workforce from the formal sector to informal sector. This process whereby, the proportion of informal worker in the total workforce increases is known as informalisation of workforce.
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