Knowledge of compliances and all the legal aspects related to employees in an industry is necessary in today‘s business world .Industrial relations and labor laws guide HR managers to understand the Indian labor laws and their applications in different industries .Industrial relations guides how to maintain cordial relations among employees for productivity and progress . Education of labor laws is always essential to shape organization‘s atmosphere and to give one an equal opportunity to all in an organization . The need for understanding of labor laws in HR managers is constantly increasing as we continue to witness increasing violent activities, behavioral disorders and lack of unity in the employees and this can be handled only through maintaining industrial relation . Labor laws enables us to understand mainly factory act , industrial dispute acts , different acts for wages and salaries etc. It also helps to remove our confusions and contradictions and enables us to rightly utilize the different labor laws . It may be rightly said that the situations would not have been so worsened had there been observance of ethical standards , that‘s why understanding of industrial relation and labor laws is required for all HR departments.