This law governs the people who are working, i.e., employee (workers), employing agencies or companies, employee unions and the government. This relates to the three sided relationship between the employee, employer and the union. Government is supposed to enforce the law which deals with the individual labour law, concerning the individual employees, conditions at the workplace and the minimum standards to be followed under which the employee shall work and the minimum wages which shall be given for different type of work.
In India, there is a distinction between workers of organised sector and un-organised sector. The labour law deals with the different industrial sector workers and to those who do not fall under this category, the law of contract applies. How these laws are being implemented can be examined by labour inspectors and they make sure that the prescribed conditions are met and proper log is maintained and the companies file returns.