With the Staff’ Provident Fund Organisation (EPFO) having made face authentication obligatory for brand new UAN era, staffing firms have flagged the hurdles in implementing the brand new norms that would end in payroll disruption and influence hiring.
In a illustration to the EPFO head Ramesh Krishnamurthi on August 5, the Indian Staffing Federation (ISF) — the trade physique of organised contract staffing firms representing over 1.8 million contract workforce employed throughout 135 firms — mentioned that one main concern is that the cellular numbers of many members usually are not linked to their Aadhaar playing cards, inflicting challenges in producing a FAT-recognised UAN. It mentioned the candidates usually are not conversant in how FAT (face authentication know-how) works with points developing as as to if their faces ought to be shut or far to the app, or assorted settings on totally different telephone manufacturers and so forth.
“The obligatory FAT requirement for member profile updates, together with KYC particulars, necessitates particular person worker participation in facial authentication. Given the transient nature of our workforce, coordinating FAT for 1000’s of staff throughout a number of places is logistically difficult and time-consuming. Many staff lack entry to smartphones or steady web connectivity, additional complicating compliance. With out UANs, wage processing and PF contributions are delayed, particularly in MSMEs and high-turnover sectors,” it mentioned.
The ISF in its letter to the EPFO chief additionally mentioned that over two days, members “did not enroll over 1,000 plus candidates because of the restrictions introduced with fast impact on account of operational challenges from UIDAI” and in addition employers not being allowed to generate the UAN as per present course of. The brand new necessities for FAT pose important hurdles for staffing firms managing giant, dynamic workforces, the ISF added.
What’s EPFO’s new FAT requirement for UAN era?
The EPFO assigns a 12-digit distinctive quantity known as Common Account Quantity or UAN to each worker contributing to the EPF. In April this 12 months, the EPFO had issued a round introducing the Aadhaar-based Face Authentication Expertise (FAT) for allotment or era and activation of UAN. On July 30, the EPFO in one other missive to its discipline workplaces said that the allotment or era of UAN shall be “accomplished solely via the Aadhaar-based FAT” in UMANG App with impact from August 1, 2025 to make sure “error-free era” of UAN. It additionally mentioned that the present strategy of era of UAN via the employer will proceed in distinctive circumstances like worldwide staff and residents of Nepal and Bhutan.
UMANG App is a single platform for Indian Residents to entry pan India e-Gov providers starting from central to native authorities our bodies.
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The ISF mentioned the restriction on employers producing UANs with out fast Aadhaar seeding, coupled with the FAT mandate, delays the onboarding course of.
“…because of the dependency on UIDAI to resolve modifications that are time taking processes. Many candidates don’t bear in mind which cellular quantity is linked to their Aadhaar card. This should be up to date earlier than they will receive a UAN,” the ISF mentioned in an announcement.
The ISF mentioned this concern wants a long-term decision because it might “enormously influence the hiring course of for such candidates as UAN can’t be generated on account of obligatory restrictions”. The ISF additionally recommended that the EPFO ought to enable employers to generate UAN for first-time staff and the compliance deadline for digital onboarding via FAT ought to be prolonged.
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