Formal economy is the way in which employees jobs are protected by government because they are employed by the government and they are entitled to pay income tax.
The following are the reason for Formal economy.
•With Formal economy an employer often has a set of rules and guideline and legal contract pertaining their recruitment process, contract, employees job roles and responsibilities and this set of rules are often put down in written.
•With formal economy employees are to work at a standard work hours and their salaries is fixed.
• Formal economy enables employer to create a conducive working environment for their employees.
•Formal economy enables employees to enjoy some certain work benefit such as:
• Requesting for loan
•Pension
•Work leave
•Insurance etc
•With formal economy employers often create a union where they can discuss matter of concern with their employees.
Learn more about formal economy here:
https://brainly.com/question/17740350
