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The Crucial Role of UAN Verification in Employment Background Checks.

UAN Verification: The Crucial Role in Employment Background Checks

 UAN Verification- Universal Account Number

When embarking on the journey of Employment Verification as a background verification company, our primary task is to validate the information provided by candidates on their Background Verification (BGV) forms, along with corroborating supporting documentation. In the course of our work, we have encountered situations where candidates, for various reasons, exploit gaps in the process to their advantage. Allow us to illustrate this with a hypothetical scenario involving a candidate we’ll call Mr. Alex, who is about to join XYZ Company.

Alex’s Employment History

Alex has previously worked for two companies before joining XYZ:

1. Company 1:
From 12th January 2020 to 24th July 2021.

2. Company 2:
From 30th August 2021 to 21st February 2023.

As part of the onboarding process, Alex diligently provided all his previous employment verification details and experience letters for verification to XYZ Company, his prospective employer. XYZ Company initiated the verification process, and following protocol, if the Background Verification (BGV) company verified the details as per the evidence provided by Alex, his report would have been cleared.

The Deceptive Overlap

Here’s where the plot thickens. Unknown to XYZ Company, Alex had overlapped his employment period with Company 2 (30th August 2021 to 21st February 2023) with that of a third company. To make matters worse, Alex had ingeniously managed to acquire an experience letter from this third company, with a twist – the owner of the third company happened to be a relative of Alex.

The Third Company’s Verification



UAN Verification

When the verification process reached the third company, Alex’s relative successfully cleared the verification by providing all the details as per the tailored experience letter crafted by Alex himself. This clandestine maneuver was undetected until the Background Verification (BGV) company performed a UAN (Universal Account Number) verification.

The Role of UAN Verification

UAN Verification
Upon conducting the UAN verification, it was discovered that Alex had indeed worked for a different company during the period from August 30, 2021, to February 21, 2023. Furthermore, it was evident that the details pertaining to the third company had been forged.

The Importance of UAN Verification


UAN Verification

This case study sheds light on the crucial importance of UAN Verification. It serves as a safeguard against deceptive practices like the one encountered in Alex’s case. UAN Verification ensures that the candidate’s employment history is accurate and free from manipulation or forgery, ultimately preserving the integrity of the hiring process.

In the following sections, we will delve deeper into the significance of UAN Verification and how it can be a game-changer in maintaining the authenticity of employee background checks. Stay tuned to explore this vital aspect of the verification process.

Understanding UAN Verification

UAN Verification
UAN verification involves confirming the validity and activity of an employee’s Universal Account Number. This step is paramount when conducting employee background checks, as it establishes the employee’s identity and ensures the accuracy of their employment history.

Why UAN Verification Matters

UAN Verification
Several compelling reasons underscore the importance of UAN verification in employee background checks. Firstly, it shields employers from potential liabilities. By validating the identity and work history of job candidates, employers can be confident they are hiring not only qualified individuals but also those with an untarnished employment record.

Moreover, UAN verification safeguards employees from misrepresentation on their background checks. Employers, by verifying the accuracy of an employee’s UAN number, ensure that their rights remain intact.

In essence, UAN verification is an indispensable tool for both employers and employees during background checks. It protects employers from potential legal issues while simultaneously safeguarding employees’ rights.

Steps to Conduct UAN Verification



UAN Verification

The process of UAN verification is pivotal to the integrity of employee background checks as it helps employers confirm the authenticity of their workforce. By verifying UANs, employers can detect and prevent the use of fraudulent or stolen identities for employment purposes. Additionally, it aids in the verification of an employee’s work history and educational qualifications.

To perform UAN verification, employers must first obtain the employee’s consent. Subsequently, they should contact the Unified Authentication Network (UAN) provider to request a verification report. Upon receiving the report, employers must diligently review it and confirm the employee’s identity.

How UAN Verification Enhances Employee Reliability



UAN Verification

UAN verification contributes to assessing an employee’s reliability in multiple ways. Firstly, it validates the employee’s identity, reducing the risk of identity theft and fraud. Secondly, it corroborates the skills and experience claimed by the employee, providing valuable information to employers seeking to verify qualifications. Thirdly, it reveals any alternative employment an employee may be engaged in.

Conclusion

The UAN verification process is a pivotal component of employee background checks. It equips employers with the essential information required to make informed hiring decisions while protecting them from potential legal liabilities. Furthermore, it guarantees that the right individual is selected for the job by verifying their identity and employment eligibility. With its numerous advantages, UAN verification is indispensable for conducting thorough and effective employee background checks.

To kickstart your employee verification process, reach out to us today! Don’t miss out on the future of online, accurate, and efficient employee verification and onboarding.

Frequently Asked Questions (FAQs)

What is UAN and its meaning?

UAN means Universal Account Number, a 12-digit number that is unique to every employee who is registered in the Employee Provident Fund. It is an identification number which remains with the employee throughout his career, it is necessary for employment verification and background checks as it can be used as an identifier.

UAN validation means confirming that the Universal Account Number of the employee is real and that it is active. The employers need to make sure the employment history is correct, there is no identity fraud, and they keep the background verification processes intact as part of the reasons why it is important to them.

UAN verification is a process which matches the candidate’s case of their employment with the records of EPFO. It identifies the work history, company names, and changes of a certain worker, thus helping to root out the deceit such as employment overlap, fake experience letters, or forged employment records.

The answer is absolutely no. Employees’ written consent is a prerequisite for employers to access UAN details. The verification process ensures that the privacy of the employee is respected as it requires authorization and follows data protection guidelines.

Usually, it takes 2-5 working days for the UAN verification depending on the method used. Verification based on the online API can give results very quickly, while manual verification by EPFO may need more time.

UAN verification reveals:

    • The employment history with exact dates
    • Names of the companies and establishment codes
    • PF contribution details
    • The status of the account (active/inactive)
    • Any inconsistencies in the employment records

It is not really mandatory by law, however, for serious and comprehensive background checks, the UAN verification is very necessary and highly advisable, especially for senior positions or jobs that require a very high trust level. Most of the companies today treat it as a regular or standard part of their verification process.

The employer is informed of the differences between the employment history that is faked and the one that is real if there mistakes found. Hence, they cannot just assume, they need to ask the candidate or take action in accordance with their hiring policy.

Certainly, UAN verification is a very efficient method for finding out if there are employment overlaps, as it indicates the exact time periods when the employees are working and the contributions that they make to PF. This makes it easy to spot just by looking at the data those candidates who might be tricking the companies by not telling that they are working for several jobs at the same time.

Depending on the service provider, the price for one UAN verification generally varies in the range of ₹50-₹200. They can also offer the better rates for the organizations that are checking lots of people if those organizations buy the bulk verification packages and use the API integrations.

For UAN verification, you generally need:

  • Consent form signed by the employee
  • UAN number (if available)
  • PAN card information
  • Aadhaar number (optional)
  • Letter of authorization for the employment

Indeed, UAN verification can be achieved online through authorized verification platforms that have access to EPFO databases. This gives quicker responses than the manual verification process.

Mistakes that are typical include:

  • Wrong UAN number entered
  • Details that do not match
  • UAN accounts that have been inactive or dormant
  • Technical problems connecting the EPFO database
  • KYC documents not completed

UAN verification is very reliable because it goes straight to official EPFO records. Yet, the level of accuracy is influenced by the extent of data coverage in EPFO systems and the correct execution of verification protocols.

UAN verification is not the only element but it plays an important role in the background check process. It is aimed at confirming employment history and PF contributions. However, for a complete screening, it is necessary to carry out education verification, criminal checks, and reference verification in addition to this.