The scheme will remain operational for a period of six months, starting from June 29, and will provide employers with an opportunity to settle eligible cases through a transparent, fully digital and time-bound process. The scheme covers cases where orders for penalty or damages are under challenge before judicial forum and final damages or penalty orders where recovery is pending or only partly made, including Recovery Certificate (RRC) cases.
Further, cases where notices have been issued but final orders for damages or penalty are yet to be passed will also be covered under along with cases where notices for penalty and damages are yet to be issued.
Under VISHWAS, 2026, damages or penalty for defaults pertaining to the period prior to June 14 2024 shall be recalculated at substantially reduced rates, namely 0.25% per month for defaults up to two months, 0.50% per month for defaults from two to less than four months, and 1.00% per month for defaults exceeding four months. “These concessional rates are intended to encourage employers to resolve pending disputes expeditiously,” the ministry said. According to the statement, in order to avail the benefits of the scheme, employers are required to ensure that the entire interest payable under the schemes, as applicable, has been fully remitted before submitting an application.
Applicants are also required to furnish an undertaking that no further appeal shall be pursued in respect of the dispute settled under the Scheme.
