Upwork payment protection

Upwork's payment protection system is a key feature that provides security for both freelancers and clients. The specific type of protection varies depending on whether a contract is hourly or fixed-price.

For Freelancers: How You're Protected

1. Hourly Payment Protection

This is a robust system designed to ensure freelancers are paid for their time, even if a client fails to pay. To be eligible, freelancers must follow specific rules:

Use the Upwork Desktop App: All hours must be logged using the official app. This app records time and takes random screenshots of the freelancer's screen, which are visible to the client in the Work Diary.

Detailed Memos: Each block of time logged should have a clear, descriptive memo explaining the work that was done.

Good Standing: Both the freelancer's and client's accounts must be in good standing.

Verified Client Billing: The client must have a verified billing method on file.

If these conditions are met, Upwork's Hourly Payment Protection will cover the hours worked, and you will be paid even if the client's payment fails or they dispute the hours. However, it's important to note that this protection does not apply to:

Manual time that is not logged with the app.

Bonuses or other one-time payments.

Work done on fixed-price contracts.

2. Fixed-Price Payment Protection (Escrow)

For fixed-price contracts, Upwork uses an escrow system. This provides a different kind of security:

Pre-Funding: Before any work begins on a milestone, the client must deposit the full payment for that milestone into an escrow account. The funds are held here, separate from both the freelancer's and client's accounts.

Payment Release: The freelancer only receives the funds after they have submitted the work and the client has approved it.

Automatic Release: If a client fails to approve the work or respond to the submission within 14 days, the funds are automatically released from escrow to the freelancer. This prevents a client from indefinitely delaying a payment.

Dispute Resolution: If a client is unhappy with the work and refuses to release the payment, either party can file a dispute with Upwork. Upwork's dispute resolution team will then mediate and help resolve the issue.

For Clients: How You're Protected

Upwork's system also protects clients from paying for uncompleted or unsatisfactory work.

Escrow Service: For fixed-price projects, funds are not released to the freelancer until the client has had a chance to review and approve the work. This gives the client full control over when to release the payment.

Work Diary and Screenshots: For hourly contracts, clients can review the Work Diary, which includes screenshots and activity levels, to verify the hours billed. If a client sees hours that they believe are not related to the project, they can dispute them.

Dispute Assistance: Upwork's dispute resolution team can assist clients in seeking a refund for fixed-price contracts if the work is not delivered as agreed upon. Similarly, for hourly contracts, Upwork will refund a client for any hours that do not meet the criteria for Hourly Payment Protection.