ILO adopts international labour standard

UN's labour agency has adopted a landmark international labour standard to help millions of workers and economic units across the world make successful transition from informal to formal economies.

The recommendation was adopted with a thumping majority of 484 votes at the 104th session of the International Labour Conference, with one country voting against the recommendation and five absentees.

"This is important because it is the first international labour instrument that covers the informal economy holistically including wage workers, small businesses, entrepreneurs and self-employed," said Azita Berar Awad, Director of the Employment Policy Department of the International Labour Organization (ILO).

"Until recently, everybody thought of formalisation as compliance only. But this is a more positive and comprehensive approach to formalisation," Awad added.

International labour standards -- legal instruments which set the basic guidelines and rights at work -- are either conventions, which are legally binding international treaties that may be ratified by member states, or recommendations, which serve as non-binding guidelines.

They are drawn up by the ILO's constituents consisting of governments, employers and workers.

The recommendation provide strategies and guidance on policies that can facilitate the transition, prevent the informalisation of formal economy jobs, and create decent jobs in the formal economy.

Informal economy currently accounts for almost 50 per cent of the world's workforce, 91 per cent of SMEs and an even greater proportion of micro-enterprises.

Informality affects women, the disabled, the youth and minorities disproportionately and cuts across sectors.

Almost 93 per cent of the Indian workforce is in the unorganised sector.

However, the percentage depends on how this is calculated, for instance, if it includes subsistence employment as well.

"India played a very positive role in the discussions on the issue," said Awad.