08/09/2025
New Rule: HR’s New Challenge
The government has introduced a new rule requiring employees to generate their own ( number) through the app using face authentication.
On paper, this change promotes:
✔️ Transparency in employee records
✔️ Employee ownership of PF accounts
✔️ Simplified access to PF services
However, HR professionals are facing real-world challenges with this rule.
The Practical Challenges for HR
Short-term employees: If someone joins today and resigns tomorrow, they may never create their UAN. Yet, HR is still responsible for compliance.
Onboarding delays: Making UAN creation compulsory on Day 1 can slow down the hiring process, which already frustrates candidates.
High attrition industries: In sectors like BPOs, where turnover is extremely high, HR teams are left chasing employees who leave within a week—or never return after training—just to complete UAN creation.
The Dilemma
The intention of employee-driven ownership is positive. But without clear government guidelines for short-term, absconded, or high-attrition employees, HR departments continue to bear the compliance burden.
Key takeaway: The new UAN rule is a step forward for transparency, but operational clarity is urgently needed. Until then, HR remains stuck between government regulations and employee behavior.
Frequently Asked Questions (FAQs)
1. What is the new UAN rule for employees?
->Under the new rule, employees must create their Universal Account Number (UAN) themselves using the UMANG app with face authentication. This shifts ownership of PF registration from employers to employees.
2. Who is responsible for UAN creation—HR or employees?
->Officially, the employee is responsible for generating their UAN. However, in practice, HR departments remain accountable for compliance if the employee fails to create it.
3. How does the new UAN rule impact HR compliance?
->The rule creates extra compliance risks for HR, especially in cases of short-term employment, absconding staff, or high attrition sectors like BPOs. HR may need to track and support employees to ensure UAN creation.
4. What challenges do BPO and high-attrition industries face with the UAN rule?
->In industries with high employee turnover, such as BPOs, HR professionals may spend significant time chasing employees who resign within days or weeks, making compliance operationally difficult and resource-intensive.
5. What happens if an employee does not create their UAN?
->If an employee does not create their UAN, the employer/HR is still held responsible for compliance. This is why companies are requesting clearer government guidelines for handling such cases.
6. How can HR teams manage onboarding delays due to UAN creation?
Companies can:
-> Educate candidates during pre-joining formalities. Provide step-by-step UAN creation guides. This reduces delays while keeping compliance on track.
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