Software Tech giant IBM is developing a new blockchain tool that will automate the reconciliation of casual labor contracts.
IBM considers the blockchain particularly well-suited to tackling the pain point for businesses of resolving discrepancies across thousands of casual work contracts.
A casual work contract – often referred to as a contingent work contract – function as a temporary employment relationship, which most of the time does not have sufficient job security, and usually offers part-time or payment on a piece work basis. Examples os people in this category are consultants, freelancers, independent contractors and temporary contract workers.
IBM is researching the way blockchain can be applied in managing, part-timers’ and casual workers’ contracts on an enterprise-level. It notes that processing the high volume of contracts generated by casual workers is a cumbersome and insufficiently automated task for firms at present.
The new IBM-developed system, goes by the name “the Contingent Labor on IBM Blockchain”, will provide automation in time sheet tracking, and order purchasing, and at the same time intervene between involved sides of the process.
China is Ahead
China is far ahead of U.S. in blockchain-based invoicing.
Internet giant Tencent — the developer of social media platform WeChat — provided the Shenzhen Tax Service with a blockchain-based invoice system last year. As of November 2019, Tencent’s system had processed invoices comprising a total value of over 7 billion yuan (nearly $995 million).