This inspectorate operates within the Ministry of Finance, Labor and Transfers and is responsible for: Labour, finance and transfers and labor inspections. The Labor Inspectorate is the only body within the executive power of the Republic of Kosovo that monitors the implementation of legislation in the field of labor relations as well as safety and health at work. The Labor Inspectorate oversees the implementation of Labor Law No. 03/L-212, as well as Law No. 04/L-161 on Safety and Health at Work.

Also, the Labor Inspectorate supervises the implementation of some provisions of some other laws such as: Law no. 04/L-156 on tobacco control, Law no. 04/L-219 for foreigners, Law no. 03/L-200 on strikes, Law no. 03/L-019 on training, professional retraining and employment of persons with disabilities and Law No. 02/l-81 for the promotion and protection of breastfeeding.