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In November, 1937, the Department of Industries and Labour was bifurcated into the Department of Labour and the Department of Communications.  The Department of Labour was made responsible for labour, Public works, Stationary and printing, mines, electricity, boilers, explosives, inter-provincial migration, factories and matters connected with International Labour Organisation.

The activities of the Department of Labour increased considerably during the second World War and it eventually became so enormous that in April, 1946 it was further bifurcated into the Department of Works, Mines and Power and the Department of Labour.  The Department of Labour dealt with matters relating to Labour and resettlement of ex-servicemen.  It was entrusted with the additional responsibility of the rehabilitation of civil and military demobilised personnel, National service, Labour Tribunal, Employment Exchanges, Technical Training Centres, etc.  In that year the Department of Labour evolved a five year programme of legislative and administrative measures in consultation with the State Governments and all India Organisation of Employers and workers.  With these added functions, the responsibility of the Department of Labour increased considerably.

In 1947, the Department of Labour was re-designated as the Ministry of Labour under the change of a Minister of Cabinet rank.  In today's context the Minister of Cabinet rank has been assisted by a Minister of State because of the increased work load of this Ministry.
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