Enlisted below are the prime functions of the department:
- Maintenance of industrial peace and harmony in the province of Punjab
- Settlement of industrial disputes through the process of conciliation, arbitration and adjudication
- Coordination with District Labour and Human Resource Boards, dissemination of labour market information and implementation of government policies in this regard
- Adjudication of claims of compensation and cases for non-payment of wages
- Registration and de-registration of trade unions / federations
- Conducting referendums for determination of Collective Bargaining Agents and supervision of election proceedings of trade unions and federations
- Audit and scrutiny of the annual returns / funds of trade unions and federations
- Enforcement of labour welfare laws on factories, transport, railway, shops, commercial and industrial establishments
- Implementation of government policies and programmes for the gradual elimination of child labour
- Coordination of government efforts combating the issue of Child Labour and Bonded Labour
- Registration and de-registration of factories, shops and commercial establishments
- Training in various disciplines of industrial relation, administration and financial management to the departmental functionaries, trade unionists and management representatives at Industrial Relations Institute
- Provision of training, information and advisory services to the industry for improvement of safety, health and working environment of working conditions and environments
- Distribution of marriage grants, talent scholarships, funeral grants, management and distribution of education cess
- Allotments of plots and estate management of labour colonies
- Promotion of employment opportunities, collection and dissemination of labour market information and assistance to the defense forces by provision of data on skilled personnel