What happens when you create a Gig Pact
Undeniable rules
The conditions for the gig pact are controlled by a smart contract, and nobody can alter what happens to the money or alter its flow. The agreed upon pay amount is pre-locked, and in the worst case for anyone it remains locked.
Easy and transparent
Employer-employee can agree on a fixed payment schedule and “approve” payments. This record can be tracked and used for audit purposes. Moreover the digital signatures of both parties are stored while creating the pact, so that this could be used later as a proof, even off the blockchain.
Third-party mediation
Not all disputes can be resolved through a smart contract. The flow to add mediator ensures that both parties agree to one or more mediator accounts overseeing the mediation, when the pact reaches a state of “conflict”.
Here are some examples to get you up to speed
Eric and Ema create a pact with the understanding that Ema will work for 3 week to work on 3 web page designs. The first week’s payment is already locked while creating the pact and Eric can’t back out. Moreover, if Eric decides to “Terminate” the pact, the pro-rated payment remains locked in to the pact and the rest is refunded to Eric.
Eric wants to take Ema's car on a daily rental for a week. But Ema wants to be assured that Eric will pay the rent in full. So, Eric must pay up the first week’s rent in full as a locked amount, and also has the option of not keeping the car for the entire week.
Eric decides to end the pact after 2 days and clicks on “Terminate” option. And 50 AVAX is immediately refunded to Eric and the pro-rated 20 AVAX remains in the pact which Eric must release as “Approve Payment” or as “FnF Settlement”
How the Gig Pact work
Draft
Enter the details of the employer (payer) and employee (payee) along with a short title for the gig pact. The gig pact must have a fixed pay amount and a pay duration which signifies how much has to be paid and with what frequency. Either party can create it and send it across to the other party
Sign and start
The employer puts his/her digital signature using the “Sign as employer” action along with locking the pay amount (only for the first pay cycle). The details of the pact is what the digital signature is created on, which serves as a proof that the wallet account holder agrees to the parameters of the pact. The employee signs it, and the employer can now “Start” the pact, after which the pact starts counting time elapsed for the pro-rated payment.
Pay and withdraw
The locked amount for the first pay cycle remains locked and the employer must “Approve payment” at every cycle by themselves. The employee then gets the option of withdrawing the accumulated payment.
Terminate
Both parties have the option of terminating the pact at any point. Right after termination the pro-rated payment is held up in the pact and the rest is refunded to the employer. Both the parties can mutually agree on any remaining payment to be cleared on either side and use the “Settle FnF” option to make the full and final settlement
Disputes
The employee has the option of raising the dispute with a suggested amount that he/she thinks is owed to him/her. The pact remains in “disputed” state unless the employer pays the amount or the employee marks it as “resolved”. Both parties have the option of adding one or more accounts as “arbitrators” to resolve the dispute for them. These are accounts mutually agreed upon by both the parties, that have the power of marking the pact as resolved.
