Giving great relief to the employers, the Employees’ Provident Fund Organization (EPFO) has launched a special One-Time Dispute Resolution scheme named ‘VISHWAS 2026’. This scheme, launched under the Ministry of Labor and Employment, is for those employers whose cases of penalties or damages related to EPF are pending for a long time. This scheme will be applicable for six months starting from June 29. During this period, eligible employers will be able to get their cases settled completely online and within the stipulated time limit.
Which cases will get the benefit of the scheme?
Many types of matters have been included under VISHWAS 2026. This will also include those cases in which the order of penalty or compensation has been challenged in the court or other judicial forum. Apart from this, cases where final order has been issued but recovery has not been completed or partial recovery has been done will also come under the purview of this scheme. Cases with Recovery Certificate (RRC) have also been included in this.
The benefit of the scheme will also be available in those cases in which notice has been issued but the final order has not yet come. Even in cases where notice has not been issued yet, they will be able to apply under this scheme as per the prescribed conditions.
Penalty will be fixed again at lower rates
EPFO has said that in cases related to default committed before June 14, 2024, the amount of penalty and compensation will be re-determined at concessional rates. According to the new rates, penalty or damages will be fixed at the rate of 0.25% per month for delay up to two months, 0.50% per month for delay of two months to less than four months and 1% per month for delay more than four months. The government believes that this will resolve old disputes quickly and the number of legal cases will also reduce.
What needs to be done to avail the benefits of the scheme?
To avail the benefits of VISHWAS 2026, employers must first ensure that the entire interest payable under the concerned EPF scheme has been deposited. Only after this they will be able to apply under this scheme. Along with the application, the employers will also have to give a written declaration that they will not appeal against the dispute which will be settled under this scheme in any court or other forum.
Both employers and EPFO will benefit
Experts believe that this scheme will not only provide relief to employers from long-running disputes, but will also help EPFO in faster disposal of pending cases. By making the entire process digital, transparency will increase and time will also be saved. In such a situation, VISHWAS 2026 is being considered a beneficial initiative for both employers and EPFO.
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