Abstract

Blockchain technology has evolved and has now entered the non-finance function since some organizations have begun to use blockchain to facilitate human resources management practices. One of them is to make psychological work contract formation process more efficient and effective. This paper analyzes the potential and challenges of using Blockchain-based application for Islamic human resources management practices. Drawing from the current literature review existence, the paper discussed various interesting mechanism to support the formation and maintenance of psychological work contract that can bring some potentials and benefits. The paper also underlined the challenges facing in applying blockchains in Islamic HRM and some strategies to face the challenges. We argue that blockchain has the ability to harmonize differing sharia-compliance in work contract or work agreement between employee and employers.