Top Reasons IT Companies Must Prioritise UAN Verification

June 17th, 2024

In India, IT companies are growing at a break-neck speed, and are a source of employment for a huge part of the population. Being such a vast industry, there is no lack of challenges that this industry faces. Besides the other challenges, an IT company can face the threat of moonlighting. In fact, recently the cases of moonlighting are rising very fast, and top companies are trying to stay safeguarded from this by implementing strict measures and using digital background verification, especially UAN checks. If you want to understand why it matters, then this blog will work as an eye-opener. Here are all the details that will help you make the right decision. Contact the Digiverifier team for UAN verification.

Know Why UAN Check Matters to IT Companies

What Is Moonlighting?

Moonlighting is a term given to the practice where an individual works for more than one employer simultaneously. In the IT world, this is a problem, which is rising at an unprecedented rate, especially the pandemic that led to remote work accelerated the cases of moonlighting.

An employee who is engaged can be great trouble for the employer for multiple reasons, such these cases can lead to a rise of conflict of interest, confidentiality concerns, productivity issues and many more.

What Is UAN Verification?

UAN verification aka Universal Account Number Verification is one of the best ways to identify moonlighting candidates. In this verification, the employer uses the allotted UAN to an employee by EPFO for PF deduction by his or her past employer to verify the information like moonlighting.

Top Reasons IT Companies Should Invest In UAN Verification

Combating Moonlighting at All Stages

The issue of moonlighting, or secretly taking on multiple employment positions without the main employer’s approval, poses a significant concern in the IT sector. This behaviour can lead to conflicts of interest, reduced efficiency, and breaches of confidentiality. UAN verification can play a crucial role in identifying cases of moonlighting. Employers can take proactive measures at all stages by using the UAN to identify simultaneous PF contributions, which consolidates all employment records and enables effective enforcement of company employment policies.

Ensure Candidates/Employees’ Authenticity and Credibility

One of the most important reasons for IT companies to perform UAN checks is to ensure the credibility and authenticity of the candidates and/or employees. This is because the verification can accurately help the employer identify the individuals who are engaged in moonlighting. Hence, employers will be able to prevent poor hiring decisions from early stages.

Enhancing Compliance With Regulatory Requirements

Employees who engage in additional work may potentially violate terms of employment agreements, such as non-compete and confidentiality clauses, resulting in legal disputes and damage to the employer’s reputation. Therefore, employers must diligently ensure that their workers comply with all contractual obligations and responsibilities.

Data Privacy

For IT companies data is the most valuable asset, hence it becomes necessary for them to protect the data from every attack and theft threat. Employees engaged in moonlighting can be a menace for the company as they can pass confidential data, and trade secrets to competitive companies, and this act can amount to huge loss for the company. With #UANverification, you as an employer will be in a position to eliminate this risk as you can identify the candidates/employees who are moonlighting, and take actions to get rid of them.

Company Resource Misuse

People who work two jobs might misuse their employer’s resources, such as equipment, technology or time at work for their own projects or secondary employment. This kind of misuse can disturb the business functioning and lead to monetary loss along with moral concerns for the company.

Erosion Of Trust And Loyalty

Employers desire commitment and faithfulness from their workers. Doing a second job can deteriorate trust and devotion between employer and employee, as it suggests that the worker may favour other job commitments over their main one. This might harm workplace spirit, causing a lack of team harmony.


IT companies must prioritise UAN verification as a strategic necessity. This practice elevates the dependability of digital employee background checks and tackles concerns like moonlighting, compliance, and workforce management. By ensuring precise and authenticated employment records, companies can mitigate risks, foster employee confidence, and make well-informed decisions. Investing in strong verification processes, such as UAN checks, will be crucial for sustaining growth and retaining a competitive advantage as the IT industry evolves. Contact the Digiverifier team for UAN verification.

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