We developed Direct Contracts to give you an easy way to invoice and receive payments from your clients who do not have an Upwork account.
Since you already know these clients, the process usually goes smoothly. However, we understand that issues still may occur. That’s why we provide certain dispute options for you and your client.
Non-Payment Disputes for Fixed-Price Direct Contracts
If your client cancels the contract while a milestone is in progress and doesn’t release payment to you, you can file a dispute.
We recommend that you contact the client first and try to resolve the issue, but be sure to make sure you don’t miss the window to file a dispute. You have 7 days after the contract cancellation to do so.
Steps to file a dispute:
- Select "Get Help" in the action menu of the contract — hover over the ellipses in the top right-hand corner to see the action menu.
- Choose Contact us in the How Can We Help box that comes up next.
- Select File a dispute.
- Choose the disputed amount and explain what happened. Give details to support your claim that you completed the work and that your payment is due.
- Attach any relevant files or images that support your claim.
Once you submit the dispute, we will change the status of the contract to in dispute until we resolve it. You will not be able to cancel the dispute or work on the contract. If you and the client decide to work together while the dispute is in process, you can start a new contract.
We will hold the contract’s escrow funds until we resolve the dispute. We try to process disputes as quickly as possible, but also need to consider each one carefully. The process can take up to 21 days.
Hourly Direct Contracts Disputes
If your client cancels the contract, you will be paid for all billed hours, unless the client files a dispute of your hours within four (4) days.
With hourly contracts, your client can also dispute your billed hours instead of canceling the contract; they have 4 days to review the hours you submitted. During that review period, the client can file a dispute for part or all of your hours.
If your client disputes your hours during an active contract, we will pause your contract and change the status of the contract to in dispute. You will not be able to work on the contract. One of our dispute specialists will reach out to you to work through this issue with your client. Please respond as quickly as possible.
Remember that if you work more hours than the client set as a maximum per week in the contract, your client can decline those extra hours. You can’t dispute that non-payment.
Note:
Bonus payments are not placed in escrow and can’t be disputed.
Freelancers can file disputes on fixed-price Direct Contracts, but keep in mind that the dispute must be filed within 7 days of your client canceling the milestone or contract and not releasing payment.
Here’s how to file:
- Click on Get Help in the action menu of the contract — hover over the ellipses in the top right-hand corner to see the action menu.
- Choose Contact us in the How Can We Help box that comes up next.
- Select File a dispute.
- Choose the disputed amount and explain what happened. Give details to support your claim that you completed the work and that your payment is due.
- Attach any relevant files or images that support your claim.
Please note that freelancers cannot file disputes on hourly Direct Contracts.
For fixed-price Direct Contracts, the window to file a dispute is 7 days of your client canceling the milestone or contract and not releasing payment. After 7 days, a dispute cannot be filed.
Unfortunately, no. You have 7 days to file a dispute after your client cancels a fixed-price contract and doesn’t release the escrow payment. After that, a dispute cannot be filed.
This escrow deposit is our way of providing you with peace of mind on direct contracts. This way you know that the money is set aside for payment once you have worked the contracted hours for the week.
We want to make sure we have time to fully review and help you and your client work toward a resolution. We’ll be chatting regularly during the dispute process, which can take up to 21 business days.
When you start an hourly Direct Contracts contract, you and your client agree on a set number of weekly hours. We only pre-charge your client for that number or hours and that amount is placed in escrow. If you plan to work additional hours, please discuss this with your client in advance. A dispute cannot be filed for any additional hours worked outside the number that was agreed upon in your contract.