Employer Penalties & Sanctions for Misconduct

Smart Contract-Based Employer Penalties

🚨 Non-Payment or Payment Withholding → Funds Forfeited & Locked in DAO Arbitration

If an employer refuses to release funds despite clear proof of work completion, OpenTask’s DAO governance system will step in to review the case. If the employer is found guilty of unfairly withholding payment, the escrowed funds may be forfeited and redirected to the freelancer as compensation. Employers who repeatedly engage in non-payment practices will face restricted platform access or, in severe cases, a permanent ban from OpenTask.

🚨 Excessive Cancellations or Unjustified Negative Reviews → Trust Score Reduction

Employers who frequently cancel contracts without valid reasons or leave unfairly negative reviews in an attempt to manipulate freelancer reputations will have their Trust Score downgraded. A lower Trust Score reduces employer visibility and credibility, making it harder to attract top freelancers, as the system prioritizes trustworthy clients with positive hiring histories.

🚨 Dispute Abuse or Attempting to Exploit Arbitration → $TASK Token Penalty

Employers who repeatedly lose disputes in DAO arbitration due to unethical behavior may be required to stake additional $TASK tokens as a form of financial accountability for future hires. This ensures that bad-faith employers cannot exploit freelancers or the arbitration system. In extreme cases, DAO governance may impose additional $TASK penalties on fraudulent employers, further discouraging abusive hiring practices.