The Department came into being as a separate Department in 1972. Its activities can be divided broadly into two wings pertaining to Labour and Employment.
Labour wing is responsible for the implementation of 28 Labour Laws (Central & State) with a view to establishing and maintaining peace in the Industrial Establishments. Under the provisions of the Industrial Disputes Act 1947, Labour Courts-cum-Industrial Tribunals have been set up at Shimla & Dharamsala to decide industrial disputes. Under the Factories Act,1948, registration and renewal of factories licenses is done as also ensuring safety of workers.