On August 11, 2025, the Employees’ Provident Fund Organisation (EPFO) expanded its facial authentication mandate: all new UANs must now be generated via Aadhaar-based Face Authentication Technology (FAT) through the UMANG app. Almost immediately, the Indian Staffing Federation—representing over 1.8 million contract workers—warned of widespread payroll disruptions, disrupted onboarding, and delayed exits due to technical failures, device incompatibilities, and app crashes. These delays threaten compliance with statutory deadlines and, more alarmingly, jeopardize workers’ employment and livelihoods amid no fallback plan. @ET HRWorld, @Reuters India, @EconomicTimes (via news)
For affected contract workers—often the most financially vulnerable—the delay means missed rent, grocery bills unpaid, and mounting anxiety in the absence of income. HR teams are being pulled into crisis mode: managing desperate queries, arranging manual advances, and fielding resignations from exasperated employees. Amid digital disruption, trust fractures when pay fails to land. The sense of abandonment gets amplified when essential compliance systems replace empathy with automation. This isn’t just a technical glitch—it’s a human failure that exposes how fragile worker safety nets are when redemption depends solely on digital compliance.
Under the Payment of Wages Act and the EPF & Miscellaneous Provisions Act, companies must ensure timely contributions. A failed authentication app does not absolve responsibility—it creates liability. Leading HR functions must now execute “compliance continuity protocols”: offering interim allowances, setting up biometric UMANG kiosks onsite, and maintaining case logs of UAN failures. This incident underscores the need for regulatory co-design—industry bodies pushing for phased rollouts, alternative verification options, and grievance redress mechanisms with EPFO. Failure to adapt may invite penalties, tarnish employer brand, and damage morale in contract-heavy operations.
What fail-safe payroll policies (e.g., bridging advances, in-office support, dual-auth options) should HR establish when system dependencies threaten statutory pay?
How can HR partnerships with regulators build digital compliance that’s robust but also human-centered during rollouts?
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4For affected contract workers—often the most financially vulnerable—the delay means missed rent, grocery bills unpaid, and mounting anxiety in the absence of income. HR teams are being pulled into crisis mode: managing desperate queries, arranging manual advances, and fielding resignations from exasperated employees. Amid digital disruption, trust fractures when pay fails to land. The sense of abandonment gets amplified when essential compliance systems replace empathy with automation. This isn’t just a technical glitch—it’s a human failure that exposes how fragile worker safety nets are when redemption depends solely on digital compliance.
Under the Payment of Wages Act and the EPF & Miscellaneous Provisions Act, companies must ensure timely contributions. A failed authentication app does not absolve responsibility—it creates liability. Leading HR functions must now execute “compliance continuity protocols”: offering interim allowances, setting up biometric UMANG kiosks onsite, and maintaining case logs of UAN failures. This incident underscores the need for regulatory co-design—industry bodies pushing for phased rollouts, alternative verification options, and grievance redress mechanisms with EPFO. Failure to adapt may invite penalties, tarnish employer brand, and damage morale in contract-heavy operations.
What fail-safe payroll policies (e.g., bridging advances, in-office support, dual-auth options) should HR establish when system dependencies threaten statutory pay?
How can HR partnerships with regulators build digital compliance that’s robust but also human-centered during rollouts?
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In the face of such challenges, HR departments need to be proactive and innovative in establishing fail-safe payroll policies and building robust, human-centered digital compliance. Here are some steps that can be taken:
1. Establishing Bridging Advances: HR should consider setting up a system for providing bridging advances to employees affected by payroll disruptions. This would ensure that employees have access to funds for essential expenses while the technical issues are being resolved.
2. In-Office Support: HR should provide in-office support to help employees navigate the new authentication process. This could involve setting up help desks or kiosks where employees can get assistance with the UMANG app and the Aadhaar-based FAT.
3. Dual-Auth Options: To prevent future disruptions, HR should explore the possibility of implementing dual-authentication options. This could serve as a backup when the primary authentication method fails.
4. Regulatory Partnerships: HR should work closely with regulators to ensure that the digital compliance systems are robust and human-centered. This could involve advocating for phased rollouts of new technologies, alternative verification options, and effective grievance redress mechanisms.
5. Compliance Continuity Protocols: HR should develop and implement "compliance continuity protocols" to ensure that statutory contributions are made on time, even in the event of technical disruptions. This could include interim allowances and maintaining case logs of UAN failures.
6. Employee Communication: Regular and transparent communication with employees is crucial. HR should keep employees informed about the steps being taken to resolve the issues and provide reassurances about their pay and job security.
Remember, while digital compliance is important, it should not come at the expense of employee welfare and trust. HR departments must strive to strike a balance between technological advancement and human empathy.
From India, Gurugram
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1. Establishing Bridging Advances: HR should consider setting up a system for providing bridging advances to employees affected by payroll disruptions. This would ensure that employees have access to funds for essential expenses while the technical issues are being resolved.
2. In-Office Support: HR should provide in-office support to help employees navigate the new authentication process. This could involve setting up help desks or kiosks where employees can get assistance with the UMANG app and the Aadhaar-based FAT.
3. Dual-Auth Options: To prevent future disruptions, HR should explore the possibility of implementing dual-authentication options. This could serve as a backup when the primary authentication method fails.
4. Regulatory Partnerships: HR should work closely with regulators to ensure that the digital compliance systems are robust and human-centered. This could involve advocating for phased rollouts of new technologies, alternative verification options, and effective grievance redress mechanisms.
5. Compliance Continuity Protocols: HR should develop and implement "compliance continuity protocols" to ensure that statutory contributions are made on time, even in the event of technical disruptions. This could include interim allowances and maintaining case logs of UAN failures.
6. Employee Communication: Regular and transparent communication with employees is crucial. HR should keep employees informed about the steps being taken to resolve the issues and provide reassurances about their pay and job security.
Remember, while digital compliance is important, it should not come at the expense of employee welfare and trust. HR departments must strive to strike a balance between technological advancement and human empathy.
From India, Gurugram
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