Provident Fund Body Brings in Inspection System to Ensure Transparency

The Employees' Provident Fund Organisation (EPFO) has launched a new scheme for inspecting firms under its purview to simplify business regulations and bring in transparency and accountability.

Under the new scheme, the retirement fund body would set up a Central Analysis and Intelligence Unit (CAIU) for collecting, analysing field-level data for a transparent and accountable labour inspection system, an EPFO circular stated.

The new scheme is notified by the Ministry of Labour and Employment to improve the labour inspection system.

According to the circular, the cases forwarded through CAIU will be based on data and evidence. EPFO will formulate an objective methodology for selection criteria of the cases by the CAIU keeping in view its priorities.

The new inspection system as per the circular, will cover all new firms covered under the EPFO social security schemes, establishment registered on EPFO's ECR portal and organisations listed for closure.

The ministry has also allowed the EPFO to inspect firms whose names are picked by computer based on pre-decided criteria or parameters.

For making the process more transparent, the inspecting officer has to record statement of the workers present at the time of inspection.

Under the new system, in case of contradictions in the statements of employer, worker and entries in the record, the inspecting officer will seize the relevant records.

Moreover, the inspection report would be uploaded within three days by the EPFO inspector.

The scheme also provides that in case of violation by the inspecting staff, entries will be recorded in their annual performance appraisal report (APAR).