The Compliance Engine
Indian HRMS Left Behind.
While conventional HRMS calculate payslips for permanent white-collar staff, yfy eliminates balance-sheet liabilities where 70% of workforce risk lives: contractor invoice overbilling, 36-state jurisdiction rules, and manpower supply operations. Sits alongside your existing ERP or HRMS — zero rip-and-replace.
Contractor Bill Verification & CLRA Liability Engine
You did not compute the contractor’s wage, but under CLRA §21, EPF §8A, and ESI §40, you pay for their defaults. We sit between the contractor’s bill and Accounts Payable, independently trimming attendance against your gate logs and verifying statutory challans before funds leave.
Send 3 months of paid data under NDA. We deliver a forensic Variance & Exposure Report before you commit.
Run 1 branch or contractor in parallel. You never pay while an implementation or replay runs.
Finnovo Tech Functional Pvt Ltd · Madhapur, Hyderabad · ISO 9001:2015 · ISO 27001:2022 · ISO/IEC 27701:2019
70% of workforce risk lives where conventional HRMS never go
Mainstream HR software is built for on-roll white-collar staff. But Indian enterprises face three high-stakes statutory traps that standard payroll, ERPs, and compliance consultancies structurally cannot solve.
Contractor Residual Liability & Overbilling
You did not compute the contractor's wage, but under CLRA §21, EPF §8A, and ESI §40, you pay the penalties, back-wages, and interest when they default.
The 36-Jurisdiction Silent Misfiling Trap
Multi-state payroll is not a volume problem — it is a legal jurisdiction problem. 22 PT states, 16 LWF states, and dual-running Labour Codes.
Billed-Day Drift & Held-Up Receivables
Staffing agencies operate on 3–5% margins. Attendance delays become billing delays; billed days drift from paid days; and multi-site worker PF ceilings leak money.
The 50% wage definition under the Code on Wages is estimated to increase statutory costs by 3%–15%. Flipping blindly to new figures globally understates liability in states operating legacy acts. yfy is the only engine built with dual-running guardrails holding you to the stricter statutory threshold.
Three systems touch this today.
None of them sits in the payment path.
Why existing tools leave CFOs with millions in unhedged exposure.
A statutory library, register tracking, and human auditors. Genuinely good at telling you what happened.
Built to manage permanent employees. Contractor bill verification is not a feature they offer because their buyer never asked for it.
Records the vendor invoice, matches it to a purchase order, and releases payment upon budget approval.
We sit directly between the contractor's bill and Accounts Payable.
Attendance trims the claimed man-days, the statutory engine verifies wages & challans, and the output is a mathematically capped "Eligible-to-Pay" figure before cash is released.
Report → Verify → Release
The contractor reports. Your data trims it. The statute checks it. Only then does money move.
1. Contractor Reports
The vendor uploads a monthly invoice with per-worker wage lines plus the EPF, ESI, and LWF challans they claim to have paid.
2. Attendance Trims It
Your own gate access or biometric muster independently caps claimed man-days. Ghost workers and inflated shifts are trimmed immediately.
3. The Statute Checks It
Minimum wage for that site, zone and skill. Statutory bonus. PF, ESI and PT computed for that jurisdiction against uploaded challans.
4. AP Releases Verified Cap
Accounts Payable releases the mathematically verified figure: Eligible to Pay = Verified Wages + Statutory Add-backs + Agreed Margin + GST.
"The principal employer didn't compute the wage. The contractor reports it — the principal employer checks it."The design rule written into every service in the platform.
We publish our coverage — including the gaps
EPF, ESI, TDS, statutory bonus, gratuity, minimum wage and leave are handled nationally. Every jurisdiction on the matrix shows what we load, to what depth, and when a named person last checked it against the gazette.
Ask every vendor on your list for their matrix. A vendor claiming complete coverage of all 36 jurisdictions is either not counting union territories or not telling you the truth. Ours is a live page with a date on it.
What we generate as a file — and what we do not
We do not invent return formats we cannot source. Here is the line, drawn plainly.
| Generated as a file | Computed, recorded, evidenced | Gated outside our control |
|---|---|---|
| TDS — Form 138, quarters 1 to 3 | Professional tax — liability to the rupee, employee and employer split | TDS quarter 4 and Annexure II — awaiting the ITD notification |
| PF — the revamped ECR, establishment-filtered | Labour welfare fund — including the employer half that never appears on a payslip | Form 16 — depends on TRACES processing |
| ESI — Monthly Contribution, in the department's own template | Filing and payment recorded; return and receipt held in the evidence vault | We will not guess at either |
Every state has its own PT and LWF return format and its own portal. Building from inference is how vendors ship files the portal rejects.
Controls that refuse, not controls that warn
A control an administrator can dismiss under deadline pressure is not a control.
Four-way separation
Strict four-way separation of duties on the money path. The person who prepares cannot approve, and the person who approves cannot release.
Hash-chained ledger
Tamper-evident hash-chained evidence ledger holding no personal data. Every statutory computation is cryptographically stamped.
Irreversible migration
A migration process that cannot be unpicked. Once historical data is ingested and the baseline is signed off, it is locked.
Physical isolation
Physical schema-per-tenant separation. Your data never sits in the same table as another enterprise's records.
* We added a fourth payroll verb after finding two of our own roles both carried a single approve grant — which meant our four-eyes control was two eyes in practice.
Nobody buys fourteen modules.
They buy one urgent thing and keep thirteen.
Breadth is why you stay — every serious vendor claims 14 modules. But compliance certainty is why you choose us. Here is our actual position, told honestly.
Statutory & Compliance Infrastructure
No specialist in the Indian market does these the way we do. Built to eliminate balance-sheet liabilities before money leaves.
Integrated Operational Suite
A dedicated point solution may have more niche bells and whistles. But each has one thing it structurally cannot do: connect to your live statutory ledger.
Commodity Plumbing
These modules are reliable, complete, in daily use, and not a reason to choose us. Depth here would have cost us the statutory depth that matters.
Sold and licensed per module. Entitlement is enforced at the platform middleware with a clean lifecycle. You never pay for fourteen modules to use two.
View Transparent PricingPriced on Compliance Complexity, Not Headcount Bloat
Billing begins at go-live, not at signature. You do not pay while an implementation or replay runs.
Multi-State Employer
Payroll and statutory across every state you operate in.
- ✓Automated payroll
- ✓Multi-state statutory (PT, LWF)
- ✓Basic leave & attendance
- ✓Employee self-service
- ✓Setup & migration support
Billing starts at go-live, not at signature.
Principal Employer
Contractor compliance verified before you pay.
- ✓Contractor bill verification
- ✓PF/ESI challan reconciliation
- ✓Site muster & attendance trim
- ✓Exposure dashboard
- ✓Priority support
Billing starts at go-live, not at signature.
Enterprise Group
Bespoke configuration for multi-entity conglomerates.
- ✓Full suite access (ATS, PMS)
- ✓E-vault & document mgmt
- ✓Full API access
- ✓Multi-entity consolidation
- ✓Dedicated account manager
Billing starts at go-live, not at signature.
Frequently Asked Questions by CFOs, CHROs & Legal Heads
Clear, unambiguous answers on liability mitigation, ERP integration, statutory accuracy, and parallel migration.
Under Section 21 of the Contract Labour (Regulation and Abolition) Act, Section 8A of the Employees' Provident Funds Act, and Section 40 of the ESI Act, principal employers are held strictly liable for contractor defaults in wages and statutory dues. yfy sits between contractor invoices and Accounts Payable: it automatically reconciles billed worker days against biometric gate logs, audits ECR challans to guarantee vendor PF/ESI contributions specifically cover your plant or establishment, and computes an unbreachable 'Eligible to Pay' release cap before payment release.
Have a specific multi-state or contractor scenario?
Speak directly with our statutory systems architects — no generic sales pitch.
Certified Secure.
Trusted by Enterprises.
yfy® (by Finnovo Tech Functional Private Limited) maintains three ISO certifications — ensuring quality, security, and privacy for every HR workflow, payroll transaction, and compliance filing.
yfy® is a registered trademark.
Start with the number, not the software.
We would rather prove the engine on your own data than show you someone else's logo. Test our statutory accuracy on your past records before you ever commit to a live month.
Contractor Exposure Assessment
Send 3 months of contractor invoices, gate attendance logs, and challans under NDA. We return your claimed vs statutorily eligible variance, sizing your residual liability under CLRA §21, EPF §8A, and ESI §40.
3-Month Historical Payroll Replay
Send 3 months of already-paid payroll for your direct employees. We re-compute them on our 36-jurisdiction engine and report every variance where your incumbent system missed or misfiled. It writes nothing to live data.