Response: Handling Non-Payment on Upwork

Understanding Upwork’s Payment Protection

First and foremost, I want to highlight that Upwork provides Payment Protection to ensure that every hour or every milestone you work is paid. There are two types: Hourly Protection and Fixed-Price Protection.

• Hourly Protection: When you work with your client using an hourly contract, Upwork Hourly Protection applies. This will need work diaries that provide proof of work, so be sure you’ve activated screenshot feature on Upwork Time Tracker.
• Fixed-Price Protection: Here, every step or milestone should be clearly defined in the contract. These milestones are funded by the client into escrow before you start working. Once the milestone is accomplished and submitted, the client will release your payment from escrow.

Actions to Take If a Client Doesn’t Pay

But what if, despite these protections, a client fails to pay? Here are some actions you can take:

• Communicate: The first step is always to communicate with the client. The aim is to understand if there is a delay or misunderstanding on their end.
• Upwork Mediation: If the client fails to respond or refuses to pay without any valid reason, you can bring this dispute to Upwork’s attention and they will initiate a mediation process^*.
• Arbitration: If mediation doesn’t lead to a resolution, you can escalate the dispute to arbitration^* which is a more formal process and involves a third-party arbitrator.

Note: ^*Disputes and arbitration come with their own rules and fees. Make sure to review these on Upwork’s website.

At the end, the key is to avoid this situation as much as possible. Always ensure the contract is clearly defined up-front, the client’s payment method is verified, and communication is open throughout the project’s duration.