How do Web3 job recruitment platforms solve legal compliance issues?

Written by: MankiwBlockchainlegal service

If you want to find a job in the Web3 industry, what path would you choose? LinkdIn, recruitment websites, or Web3 native job recruitment platforms?

Obviously, as the domestic supervision of the Web3 industry becomes increasingly strict, the number of Web3 industry positions on traditional domestic recruitment platforms has dropped sharply. At the same time, Web3 native job search and recruitment platforms are more popular with Web3 job seekers due to their high update frequency, many positions, high salaries for remote work, and direct communication with project parties. According to Mankiw's observation, the Telegram groups/channels/WeChat private domains built by the more common Web3 job search and recruitment platforms basically have more than 10,000 users, and the number of users who have registered for job search on the platform is over 1,000.

Although users can always easily find their desired Web3 jobs through such platforms, risks always exist in the process.

What do Web3 job seekers care about?

Previously, Mankiw talked with users who had used the Web3 job search and recruitment platform and learned that job seekers generally worry about the following issues:

Privacy Disclosure

Usually, Web3 job search and recruitment platforms need to collect and process a large amount of users' personal information, such as name, contact information, resume, etc., during their operation. These data are often highly sensitive to users and are usually shared publicly on different online platforms (such as Telegram groups, platform official websites, Notion collaboration forms), increasing the risk of improper access or abuse of data.

Once information is made public on the Internet, it may be used by criminals for improper purposes. For example, job applicants’ contact information may be used to send spam, make harassing calls or text messages, or even involve more serious identity theft.stealWhat’s worse, criminals may use public personal information to induce job seekers to invest in fake projects or participate in other forms of fraud, causing financial losses.

For Web3 job search and recruitment platforms, if they fail to take appropriate measures to protect user privacy, they may not only violate data protection regulations and lead to penalties from regulators (such as fines), but they may also face privacy infringement lawsuits initiated by users.

False Information/Scam Project

When Web3 job recruitment platforms collect job information from Web3 projects, they often fail to screen the reliability of the information in advance. Mankiw learned from his communication with users that in some cases the platform requires users to report false information or scam projects, and the platform management can only remind users to identify them in the group.

For example, a company that claims to be a blockchain game project communicates with job seekers on the platform through private messages, luring users to their fake official website. Their official website will automatically download phishing plug-ins on the job seeker's computer, causing information leakage. The recruitment information was displayed on the platform for many days until several users reported the situation. Although the platform deleted the project's recruitment information later, it was too late.

Fake or scam projects are often accompanied by highly elaborate fraud schemes that may not only lead to the disclosure of job seekers' personal information, but may also involve financial losses. Platforms may harm users due to failure to identify and delete false information in a timely manner, and may be deemed to have failed to fulfill their proper regulatory responsibilities, thus facing legal proceedings and liability for compensation, including civil liability and possible administrative penalties. In some jurisdictions, recruitment platforms may also have a legal obligation to ensure the authenticity and legality of the content provided. Failure to fulfill these obligations may lead to the involvement of regulators, including investigations and penalties.

The delivery process is not transparent

Some Web3 job search and recruitment platforms (mainly WeChat private domains) usually only provide the platform's email address. Web3 job seekers need to submit their resumes to the platform, and the platform will submit them on their behalf. However, in many cases, no matter whether the resume was submitted, whether the submission was successful, or whether the interviewer had any feedback, there is no news. Web3 job seekers can only wait passively and have no way to complain.

The lack of transparency in the application process and the lack of feedback on interview results often cause frustration to Web3 job seekers, which may translate into negative feedback on social media or other public channels, and may even inspire class action lawsuits or the intervention of consumer protection organizations. Consumer protection laws in many jurisdictions require service providers to ensure transparency and fairness in their services. The lack of transparency and response in the application process may be seen as a violation of these laws.Xiaobai NavigationViolations of regulations can expose the platform to legal liability. Long periods of no feedback and opaque processing can seriously affect the platform's market reputation. This lack of trust can lead to user loss and pose a threat to the platform's continued operation in the long run.

Salary conditions are difficult to identify

One feature that distinguishes Web3 from traditional industries is that the way salaries are paid usually has traditional fiat currencies andcryptocurrencyIn the most extreme case, the monthly salary is issued by the Web3 project.cryptocurrency, legal tender, USDT and other stablecoins, and they are cross-distributed. But generally speaking, the conditions listed in public recruitment information only contain an approximate salary range, and are marked in US dollars.

For Web3 job seekers, it is time-consuming and complex to thoroughly understand the compensation structure of each position, especially when the compensation includes cryptocurrency, risk judgment becomes even more difficult. International labor standards and national labor laws require employers to provide clear and detailed compensation information. The complexity and opacity of compensation on Web3 platforms may violate these legal requirements, exposing employers and platforms to the risk of legal action or fines. In addition, in some jurisdictions, payment in cryptocurrency may not be considered a legal payment method, which may affect the legality and enforceability of employment contracts. Failure to clearly disclose compensation information, especially in cryptocurrency payments, may constitute misleading behavior and violate consumer protection laws.

Therefore, Attorney Mankiw couldn't help but think deeply: There are obviously noteworthy issues in the Web3 job search and recruitment platform both in terms of operation and legal compliance.

How do Web3 job search and recruitment platforms respond?

Based on the communication with Web3 job seekers, Attorney Mankiw believes that the main legal compliance issues currently faced by Web3 job recruitment platforms can be resolved by clarifying legal responsibilities and supplementary measures.

Data privacy protection

According to China's Personal Information Protection Law and the EU's GDPR, Web3 job recruitment platforms, as data controllers, are obliged to protect users' personal information.Safetyand privacy. Platforms need to implement reasonableSafetyMeasures to prevent data breaches and ensure that personal information is collected and used only with user consent. Violations of these regulations can result in heavy fines and legal action.

• Developing a Privacy Policy：The platform should establish a clear privacy policy to clearly explain to users the purpose of use, storage period and access rights of their personal information.

• Technological protection measures: Introduce encryption technologies such as data encryption and access control to protect data from unauthorized access.

• Regular review: Regularly review data processing activities to ensure compliance with the latest legal regulations.

• Data anonymization and de-identification: Process sensitive information to make it difficult to directly associate it with a specific individual, thereby reducing the risk of data leakage.

Information authenticity

Although Web3 job recruitment platforms do not directly facilitate employment relations, they may still be considered to bear certain legal responsibilities if user rights are damaged due to false information. Therefore, it is crucial to clarify the boundaries of responsibility between the platform and the user. According to China's Anti-Unfair Competition Law and Europe's Unfair Commercial Practices Directive, publishing false information may result in fines and legal liabilities. Failure to effectively review the authenticity and accuracy of information may damage user rights and lead to legal disputes.

• Detailed Terms of Service and User Agreement：Clarify the rights and obligations between the platform and users. When users register and use the platform, the relevant terms must be clearly informed to the users and their consent must be obtained.

• Strict information review mechanism: Establish a strict information review mechanism to ensure the authenticity and accuracy of information through a combination of manual review and automated screening.

• User reporting and feedback channels: Establish user reporting and feedback channels, encourage users to report false information and violations, and handle them in a timely manner.

• Disclaimer: Publish a clear disclaimer on the platform to inform users that the platform only provides information aggregation services and is not responsible for the authenticity and accuracy of the information.

Process transparency

According to China's E-Commerce Law and Europe's E-Commerce Directive, platforms are required to provide necessary customer service and technical support to protect consumer rights. If Web3 job recruitment platforms fail to provide timely feedback and communication, they may be considered to have violated consumer rights protection laws, which may not only lead to regulatory penalties, but may also trigger a crisis of trust in the platform and legal proceedings.

• Clear feedback mechanism: Establish a clear timeline for application feedback and provide timely responses to applicant inquiries and complaints.

• Complaints Resolution Mechanism: Establish an effective complaint handling and resolution mechanism to ensure that user complaints are properly handled.

• Service Quality Commitment: Make clear in the terms of service the platform’s commitment to service quality, including time limits for processing job applications and communication policies.

Pay transparency and compliance

According to international labor standards and national laws, employers and recruitment platforms must provide job seekers with clear and detailed salary information, and the payment methods are in compliance with labor laws and monetary laws in the relevant regions. This includes all components of the salary (fiat currency, cryptocurrency and their proportions) and how they are paid. Failure to disclose salary information transparently may violate consumer protection laws, especially when the payment method may cause financial losses to job seekers.

• Remuneration policy and review mechanism：The platform should formulate strict salary policies and establish corresponding review mechanisms to ensure that the salary descriptions in all recruitment information are accurate, transparent, and comply with all applicable legal provisions.

• Education and guidance：The platform should provide resources and guidance to help job seekers understand the salary structure related to cryptocurrencies and its potential risks, and enhance job seekers' risk awareness and decision-making ability.

• Legality Confirmation: Regularly work with legal counsel to review the legality of remuneration payment methods, particularly within the legal landscape of different jurisdictions.

• Transparent communication: During the recruitment process, ensure that all compensation information is clearly marked and explain the possible financial and legal consequences to job applicants.

Compliance operations are of great significance

It is worth noting that when the Web3 job recruitment platform operates globally, it needs to comply with the laws and regulations of different countries and regions, including data protection laws, advertising laws, etc. Due to the differences in laws in different jurisdictions, the platform may face compliance risks that affect its normal operations.

To ensure compliance, Web3 job search and recruitment platforms should form a professional legal compliance team to regularly review the platform's operating strategies and legal compliance. The compliance team should have a global perspective and be able to develop corresponding compliance strategies based on the legal requirements of different regions. A multi-level compliance review mechanism is also essential, ensuring the platform's compliance operations around the world through a combination of internal review and external audit. At the same time, Web3 job search and recruitment platforms should also provide continuous legal training for operators to improve their legal awareness and compliance operation capabilities.

Only by establishing a sound legal compliance system can the Web3 job search and recruitment platform effectively serve users and reduce legal risks to ensure its long-term and healthy development.

The article comes from the Internet:How do Web3 job recruitment platforms solve legal compliance issues?

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