EPFO 2024 Guidelines for Digital Signature Certificates and E-Signs

Introduction

On October 10, 2024, the Employees Provident Fund Organisation (EPFO) issued new guidelines for processing Digital Signature Certificate (DSC) and E-Sign requests submitted by employers. These guidelines, outlined in File No. Compliance/SOP(DSC)/2022/5550, represent a significant update to the EPFO’s digital authentication processes. This article provides a detailed analysis of these new regulations and their implications for employers and authorized signatories.

Background

The use of Digital Signature Certificates was made mandatory by previous EPFO orders, requiring at least one DSC of the employer or authorized signatory to be registered with the EPFO. Subsequently, E-Signs were also permitted as part of e-Governance initiatives. These digital authentication methods are crucial for verifying establishment-related documents and statutory returns related to ownership.

Key Points of the New Guidelines

1. Online Submission Process

• An online process for submitting DSC/E-Sign request letters is now available in the establishment login on the Unified portal.
• The request letter must include three specimen signatures of the intended signatory, countersigned and stamp-marked by the employer.

2. Form 5A Requirement

• An up-to-date and completely filled Form 5A (return of ownership) is mandatory for processing any DSC/E-Sign request.

3. Signatory Information

• The name and mobile number of the intended signatory must be provided for DSC registration.

4. Specific Guidelines for Field Offices

Field offices must ensure the following before processing any request:

a) The request must be on the establishment’s letterhead. b) Three specimen signatures of the proposed signatory must be present. c) The request must be countersigned by the employer, with their name legibly written below. d) The request must bear the employer’s official seal. e) Identity credentials of the signatory are required:

• For employers: Aadhaar card with address and photograph
• For authorized persons: UAN Card with photograph or Aadhaar card f) Field offices must verify the validity of the Aadhaar submitted using the UIDAI website. g) An up-to-date Form 5A must be available or accompany the request. h) Each request must bear the appropriate reference number generated through the portal. i) Only the employer can authorize or re-authorize a signatory.

5. Processing Timelines

• Requests must be processed within 15 working days of receipt.
• Dealing Assistant (DA) has 5 working days (T+5)
• APFC/RPFC-II has up to 15 working days (T+15)

6. Document Submission

• Until further notice, every DSC/E-Sign request letter, identity documents, and Form 5A should be submitted as a combined PDF for verification.

7. Electronic Form 5A

• After DSC/E-Sign approval, electronic submission of Form 5A is mandatory.

8. Employer and Authorized Person Liability

• Both the employer and any authorized person are jointly and severally liable for any loss/damage caused by misuse of an approved DSC/E-Sign.

Implications for Employers

1. Increased Documentation: Employers must ensure all required documents are accurately prepared and submitted, including the request letter, Form 5A, and identity documents.
2. Stricter Verification: The new guidelines emphasize thorough verification of signatories, potentially reducing the risk of fraudulent activities.
3. Timeline Awareness: Employers should be prepared for a processing time of up to 15 working days for their DSC/E-Sign requests.
4. Liability Considerations: The joint liability clause underscores the importance of careful selection and monitoring of authorized signatories.
5. Digital Compliance: Employers must adapt to the online submission process and ensure they can provide all required information electronically.

Conclusion

These new guidelines represent a significant step towards enhancing the security and reliability of digital signatures in EPFO-related transactions. While they may initially increase the administrative burden on employers, the long-term benefits in terms of reduced fraud risk and improved digital governance are substantial.

Employers are advised to familiarize themselves with these new requirements and update their internal processes accordingly to ensure smooth compliance with EPFO regulations.

At EVERSIGN, we are dedicated to helping you navigate these new requirements effortlessly. Our platform offers robust solutions for managing Digital Signature Certificates and E-Signs, ensuring compliance with EPFO regulations while enhancing your digital workflow.

Ready to streamline your digital signature process? Get started with EVERSIGN today!