Hiring a Upwork Freelancer as a Full-Time Inhouse Employee

[#1]

We love upwork and use it a ton in my agency.  We have a freelancer we have worked with for years on a full-time basis through Upwork.  I am considering exploring the option of bringing the person into my company full-time with benefits, time off, etc.

I could not find out if Upwork has any process or policy of moving a freelancer from Upwork's system and into a direct relationship.

Obviously I'm trying to do this within Upwork's guidelines as I plan to continue to use Upwork heavily for other needs.

Thanks to anyone who can point me in the right direction.

[#2]

Thank you for bringing this up in the forum!

One of my clients is investigating the same issue regarding our contract together.

I know there's an opt-out option:

https://www.upwork.com/legal/

Section 7 

Therefore, for 24 months from the time you identify or are identified by any party through the Site (the “Non-Circumvention Period”), you must use the Site as your exclusive method to request, make, and receive all payments for work directly or indirectly with that party or arising out of your relationship with that party (the “Upwork Relationship”).

You may opt-out of this obligation with respect to each Client-Freelancer relationship only if Client or prospective Client or Freelancer pays Upwork for each such relationship:

(a) an “Opt-Out Fee” computed to be the greater of the following amounts:

(i) $2,500; or

(ii) 15% of the cost to the Client of the services to be performed in the Upwork Relationship during the Non-Circumvention Period, as estimated in good faith by the prospective Client; or

(iii) all Service Fees that would be earned by Upwork from the Upwork Relationship during the Non-Circumvention Period, computed based on the annualized amount earned by Freelancer from Client during the most recent normalized 8-week period, or during such shorter period as data is available to Upwork; and

(b) interest at the rate of 18% per annum or the maximum rate permitted by applicable law, whichever is less, calculated from the date Client first makes payment to the subject Freelancer until the date the Opt-Out Fee is paid.

[#3]

Great. Now I need my lawyer to interpret that.  LOL.  

Thank you very much for your response.

[#4]

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@Jeff S wrote:

Great. Now I need my lawyer to interpret that.  LOL.  

Thank you very much for your response.

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LOL!

I hope a moderator will swing by and translate that TOS verbiage. 

[#5]

Hi Jeff,

If it's been more than 24 months since you and this freelancer first connected on Upwork, Non-Circumvention Period is over and you can work with them outside of Upwork.

If it's been less than two years since you connected or you are interested in Upwork Payroll Service, please let us know.

[#6]

Thanks, Valeria. We are having some really positive experiences with Upwork talent. We are a tech startup and want to give stock options to some of the Upwork resources within the 24 months circumvent period. In our case, it so happens that even if we do this any vesting will happen after 24 months. Is this allowed? 

[#7]

Hi Bejoy,

There are three exceptions to Upwork’s circumvention policy.

• The Upwork Conversion Fee has been paid for the relationship.
• A relationship started outside the platform, comes onto Upwork, and is then taken outside the platform. This includes Bring Your Own.
• Relationships that have been maintained for two years or more on the platform.

In these cases, moving a relationship outside of Upwork is permitted under our Terms of Service, and does not count as circumvention.

If it's been more than 24 months since you and this freelancer first connected on Upwork, Non-Circumvention Period is over and you can work with them outside of Upwork. You can find more information in this help article. 

Thank you,

[#8]

Hi Nikoka, Refer to your point no 2, do we have to notify Upwork before hiring at Upwork that we make this relationship out of Upwork to avoid confusion in the future. 

[#9]

Hi Md Moniruzzaman,

You're not required to notify Upwork about bringing a relationship to the platform (unless you're using the available BYO process in which case it's done automatically.) However, if you wish to do so, feel free to use the email listed at the bottom of this Help article.

[#10]

I don't think that is good idea. You can hire a full-time inhouse employee locally with whom you can build trust and personal relationship which is healthy for your organization. However, you can definitely go for Upwork freelancers nearby your location. I recently wrote an article in which I discussed pros and cons of hiring from Upwork. Check it out for better understanding. Cheers!

[#11]

Himanshu,

Not all freelancing is the same. If the individual is performing commodity services, you can probably find someone local. In my specialty, strategy, not all freelancers are interchangeable. In many parts of the world, the choices would be limited to very few freelancers, and many countries literally have no one qualified.