LABOUR RIGHTS IN INFORMAL SECTOR

AUTHOR – SANTHOSH PANDIAN P, STUDENT AT SCHOOL OF EXCELLENCE IN LAW, THE TAMIL NADU DR AMBEDKAR LAW UNIVERSITY

BEST CITATION – SANTHOSH PANDIAN P, LABOUR RIGHTS IN INFORMAL SECTOR, INDIAN JOURNAL OF LEGAL REVIEW (IJLR), 6 (5) OF 2026, PG. 841-848, APIS – 3920 – 0001 & ISSN – 2583-2344.

Abstract

The informal sector in the modern global economy is no longer a transitory stage but structural permanence. This paper examines the dynamic terrain of labour rights in relation to informal workers, with special attention paid to the growing divide between them and the formal labour force in the form of a protection gap. By 2026, the demarcation of traditional employment due to technological changes and precarious gig employment arrangements has become more indistinct, and implementing basic labour standards has become more challenging. By making a comparative study of the emerging economies, this paper establishes that although there is an incremental awareness of rights among workers, institutional capability to apply these rights has not been realized. The study is concerned about the alarming relationship between high informality and intergenerational poverty cycles, especially in women and youth. The paper will conclude by a conclusion exploring the key elements that lead to success of grassroot movements and collective bargaining models in the informal economy and how the informal labour union can be empowered and social security delivery digitised to close the inequality gap and provide decent work to everyone.^[1]

KEYWORD: Informal sector, Labour rights, Formal labour force, Protection gap, Collective bargaining

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[1] International Labour Organization, Women and Men in the Informal Economy: A Statistical Picture (3rd ed. 2018)