Up to the year 1983, implementation and enforcement of The Factories Act, 1948 and The Boilers Act, 1923 was carried out by the Factory Inspector functioning under the authority of Commissioner, Labour, and Employment, Government of Goa, Daman, and Diu.

In the light of directives of the Government of India and the recommendations of the 24th Session of the Labour Ministers' Conference, the Government of Goa, Daman, and Diu decided to bifurcate the Factory and Boiler Inspectorate from the Office of the Commissioner, Labour, and Employment and to create a new Office of the Government to be named as the "Inspectorate of Factories and Boilers".

Since then, it has been entrusted with the implementation of the Factories Act, 1948, The Boilers Act, 1923, and the Rules thereunder, Industrial Safety Training Centre, and the Industrial Hygiene Laboratory. Subsequently with the enactment of The Environment (Protection) Act, 1986, powers to implement certain provisions under The Environment (Protection) Act, 1986 were vested with the Chief Inspector.

Department is headed by the Chief Inspector of Factories & Boilers, who also acts as an Ex-Officio Joint Secretary to the Government.