The Retirement fund body, Employee Provident Fund Organisation (EPFO) has notified an order to make the Universal Account Number (UAN) mandatory for all employers covered under the Employees Provident Funds and Miscellaneous Provisions Act 1952.
The UAN remains portable throughout the lifetime of an employee and he or she does not have to apply for provident fund transfer claims while changing jobs.It is even more beneficial for workers in the construction sector, who often change their contractor after short spans of time, finish contracts and take up new jobs.
The deadline for completing the formalities is August 25 after which action can be taken against those failing to comply with the order.
Employees Provident Funds and Miscellaneous Provisions Act, 1952
The Employees’ Provident Funds and Miscellaneous Provisions Act, 1952 came into effect on 4 March 1952. The Act was enacted as per Directive Principles of State Policy mentioned in the Constitution of India. It provides that the State shall within the limits of its economic capacity make effective provision for securing the right to work, to education and to public assistance in cases of unemployment, old-age, sickness & disablement and undeserved want.
