ISF flag issues with new registration of workers under mandatory facial authentication technology

The Indian Staffing Federations has written to the Employees’ Provident Fund Organisation (EPFO) requesting it to allow employers to generate the universal account number (UAN) for first-time employees, as was done earlier, while deferring the mandatory requirement of facial authentication technology (FAT) by six months to facilitate fresh recruitments.

“The restriction on employers generating UANs without immediate Aadhaar seeding, coupled with the FAT mandate, delays the onboarding process,” ISF said in a representation to the central provident fund commissioner (CPFC) last week.

ISF said staffing companies often onboard employees in bulk, and the inability to generate UANs promptly disrupts timely provident fund (PF) contribution credits.

“For new employees who have never had a UAN, the employer should be permitted to generate the UAN via the employer portal. This will ensure timely PF registration and compliance,” it said.

Further, it has sought a six-month window for digital onboarding and FAT awareness, arguing that the financial incentives (like ELI-based benefits) are only available after six months of PF membership.

“Provide a phased implementation timeline for FAT compliance, considering the unique challenges of staffing companies,” it said, adding that an extended deadline or grace period would allow better coordination with employees and reduce administrative pressure.

ISF argued that the FAT process requires additional administrative effort to educate employees, facilitate authentication, and troubleshoot technical issues.

“For staffing companies with limited resources, this diverts focus from core operations, increases costs, and strains client relationships due to delays in compliance,” it said, adding that the lack of a streamlined bulk FAT process exacerbates these challenges.

The Employees’ Linked Incentive Scheme, announced in 2024-25, has come into effect from August 1, 2025 with benefits for both employees and employers and the companies including staffing firms are keen to avail benefits on all new registrations or hiring done from the beginning of this month.