The agreement allows the ILO liaison officer in Rangoon to make a preliminary investigation of the alleged cases, and guarantees that the government will not retaliate against those making the complaints.
The agreement with Burma runs for a 12-month trial period with the possibility of an extension.
It will allow the ILO liaison officer to monitor cases more effectively by traveling freely throughout the country to meet with concerned parties.
The ILO says forced labor is common in Burma and has accused the Burmese government of complicity in the practice.
The military government's decision to cooperate came after the ILO threatened sanctions and prosecution at the UN's International Court of Justice.
Information for this report is provided by AP and Reuters