Labour Department was a part of the former Judicial Department of the Government of Assam till 1951, when it was constituted into an independent Department.

The Labour Department was renamed as Labour and Employment Department with effect from 10-07-1981 and a Research Cell was created in 1977 as part and parcel of the Department at the Secretariat level. The Labour and Employment Department has bifurcated into two Departments, i.e., Labour Welfare Department and Skill Development & Entrepreneurship Department on 26-03-2016.