1. Improves industrial relation.

2. Prospects workers from exploitation by the employers or management.

3. Helps workers from exploitation by the employers or management.

4. Minimizes labour unrest.

5. Reduces conflicts and strikes etc.

6. Ensures job security for workers.

7. Promotes welcome environment conditions in the industrial system.

8. Fixes rest pauses and work hours etc.

9. Provides compensation to workers, who are victims of accident.