Labour Rights In The Informal Economy: Legal Measures For Vulnerable Workers

Anushka Thakur, Presidency University Bangalore

INTRODUCTION

The informal sector has emerged as a key part of the global economic landscape, distinguished by its lack of regulation and generally unstructured nature. The application and enforcement of labour rules create a unique set of issues in the context of this dynamic and diversified business. The informal sector includes a wide range of activities, from street sellers and small businesses to freelancers and domestic workers, and it accounts for a significant share of the workforce in many nations. Unlike the formal sector, which has more clearly defined regulatory structures and legal protections, the informal economy operates outside of traditional labour regulations.

This introductory investigation attempts to shed light on the complexity surrounding labour regulations in the informal economy, emphasizing the necessity for nuanced methods to handle this sector's diverse and sometimes disadvantaged workforce.

The informal sector, often known as the shadow or underground economy, operates outside of the scope of conventional regulatory frameworks, making it difficult to police and apply regular employment regulations. Workers in the informal economy frequently lack legal job contracts, social security benefits, and access to dispute resolution systems. Because there is no clear legal framework, a large percentage of the workforce is subject to exploitation, unsafe working conditions, and economic insecurity. A variety of reasons influence the dynamics of the informal economy, including economic need, a lack of other work alternatives, and the informal nature of industries.