Before the establishment of the Ministry, the Department of Labor was established in 2028 BS under the Ministry of Industry to look after labor-related matters. A decade after the establishment of the Department of Labor. Ministry of Labor and Social Welfare was established in 2038 BS. After the change of division of labor regulations from the Government of Nepal, the Ministry of Labor was established in 2052 BS by separating the field of social welfare. In this context, the Ministry of Labor and Employment was renamed in 2069 BS. Again, the Ministry of Labor, Employment, and Social Security has been established on 2074/12/03.

The Ministry has been working for the creation of employment through dignified and safe management of labor in Nepal, development of skilled manpower required for employment, promotion of social security and occupational health and safety in the field of labor, and prevention of child labor. It is also the responsibility of the Ministry to make foreign employment safe, dignified, and systematic and to promote internal employment through the use of skills, technology, and capital acquired from foreign employment.