What is a major difference between formal and informal economic sectors?

A major difference between formal and informal economic sectors is that a formal economy is composed of  an organized group of people working in the same environment and who are legally and socially aware about their rights and have a formal contract with the employer

An informal economy is composed of people who are not necessarily organized, have no social security cover of any kind and have poor knowledge about the need to protect themselves socially and economically and have no formal contract with the employer.