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The Employees' Provident Fund Organisation (EPFO) has launched a new initiative to resolve disputes. Under this, a new one-time dispute resolution initiative named "VISHWAS 2026" has been introduced. Its objective is the easy and amicable settlement of disputes related to the imposition of damages under Section 14B of the Employees' Provident Fund and Miscellaneous Provisions Act, 1952, and Section 128 of the Social Security Code, 2020. The Ministry of Labour and Employment provided this information on Friday (July 17).

This scheme was notified via GSR 525(E) on June 29, 2026, as part of the EPF Scheme, 2026, and came into effect on June 29, 2026. It will remain operational for a period of six months from the date of notification.

**Safeguarding Employees' Interests**
The VISHWAS 2026 scheme has been launched to promote voluntary compliance, reduce litigation, and enabling the speedy resolution of long-pending disputes regarding penalties/damages while safeguarding the interests of employees. The scheme offers employers an opportunity to settle eligible cases through a transparent, fully digital, and time-bound process.

The scheme covers four broad categories of cases: the first category includes cases where orders for penalties/damages have been challenged before a judicial forum. The second category comprises cases involving final penalty orders where recovery is pending or only partially completed, including Recovery Certificate (RRC) cases.

The third category includes cases where notices have been issued but final orders regarding penalties have not yet been passed. The fourth category covers cases where notices for penalties/damages have not yet been issued. The Ministry stated that to avail the benefits of this scheme, employers must ensure that the entire interest payable under Section 7Q of the EPF & MP Act, 1952, or Section 127 of the Social Security Code, 2020, has been paid before submitting the application. Applicants must also undertake that no further appeal will be filed regarding the dispute settled under the scheme.

**Exclusions from the Scheme**
The scheme includes detailed provisions regarding the adjustment of amounts already paid as damages or penalties, the regularisation of statutory pre-deposits made for filing appeals, and the settlement of pending cases in a fair and transparent manner. However, establishments where penalties or damages have already been fully recovered, cases involving fraud, embezzlement, or deliberate manipulation of records, and cases where the applicable statutory interest has not been fully deposited are excluded from the scheme.

The Ministry further stated that applications under the 'Vishwas 2026' scheme will be submitted online via the EPFO ​​employer portal using a Digital Signature Certificate (DSC) or e-Sign. This process has been designed to ensure ease of filing applications, online verification, digital processing, and the issuance of settlement orders within a stipulated timeframe.

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