New Delhi: The Employees’ Provident Fund Organisation has officially introduced a major one-time dispute resolution mechanism named VISHWAS 2026. The initiative is structured to enable the amicable, out-of-court settlement of long-pending disputes regarding the levy of damages and penalties imposed on establishments for delayed provident fund contributions. Notified by the Ministry of Labour and Employment, the special window came into effect on June 29, 2026, and will remain operational for a strict six-month period. The initiative seeks to ease the burden of compliance, significantly reduce protracted legal standoffs before appellate tribunals and high courts, and facilitate the transition of businesses into the updated statutory frameworks governed by the Code on Social Security, 2020.
The targeted administrative facility provides a transparent, fully digital route for businesses looking to regularise their records under Section 14B of the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952, alongside Section 128 of the Code on Social Security. The framework spans four distinct classifications of defaults, accommodating firms currently challenging orders before judicial forums, businesses with pending or partial recovery certificates, establishments that have received initial show-cause notices, and pre-adjudication cases where formal notices have not yet been generated. For defaults that occurred prior to June 14, 2024, the organisation will recalculate damages at highly concessional, graded rates starting as low as 0.25 per cent per month for short-term delays up to two months, capping off at a maximum of 1 per cent per month for defaults stretching beyond four months.
Establishments wishing to avail themselves of these reduced financial liabilities must meet clear eligibility baselines before accessing the online utility. The ministry clarified that employers are strictly required to clear the entire principal interest payable under the statutory guidelines before their cases can be accepted for processing. Furthermore, participating firms must submit a binding legal undertaking affirming that they will withdraw all ongoing litigation and forgo any future right of appeal regarding the settled dispute. The application procedure is fully integrated into the online EPFO Employer Portal, utilizing Digital Signature Certificates or e-Sign validation to enable fast, time-bound processing. To drive grass-roots execution, dedicated VISHWAS cells have been deployed across zonal, regional, and district offices to guide employers through the digital pipeline while safeguarding the core statutory contributions due to employees.
