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23a0285d
Community Member

Upwork *edited*

Hi,

 

Do not use Upwork, they have a fake escrow process and they allow their freelancers to extort clients for more money. The arbitration process with AAA is bogus. They tell you that you can choose from three attorneys, but that never happens. It seems that they have a hnadpicked arbitrator designed to protect their interest. The arbitrator never sought clarification and made a bogus award without consultation. It was so ridiculous that I had go back and review the message exchange with the freelancer. The arbitrator never even mnetions the $2,000 extortion amount by the freelancer.

 

All clients should run from Upwork. It took me three months to get to Arbitration and that was a waste.

6 REPLIES 6
varungs
Community Member

How would a handpicked arbitrator benefit Upwork? The dispute will be resolved either in your favour or the client's, correct? In both cases, Upwork loses an equal amount of money, correct? Not sure I follow your logic here

petra_r
Community Member

Varun G wrote:

The dispute will be resolved either in your favour or the client's, correct? In both cases, Upwork loses an equal amount of money, correct? Not sure I follow your logic here


I agree there is no such thing as "hand picked arbitrator" but your math is wrong.

 

If the client wins, Upwork loses the Upwork fee.

If the freelancer wins, Upwork does not lose the Upwork fee.

varungs
Community Member

Petra R wrote:

If the client wins, Upwork loses the Upwork fee.

If the freelancer wins, Upwork does not lose the Upwork fee.


Thanks, Petra, that's interesting. That's more evidence against OP's point.

 

May I ask why this happens? Isn't the arbitration cost the same regardless? As in, why would the AAA accept a lower or higher fee based on any specific outcome?

petra_r
Community Member


Varun G wrote:
Petra R wrote:

If the client wins, Upwork loses the Upwork fee.

If the freelancer wins, Upwork does not lose the Upwork fee.


Thanks, Petra, that's interesting. That's more evidence against OP's point.

 

May I ask why this happens? Isn't the arbitration cost the same regardless? As in, why would the AAA accept a lower or higher fee based on any specific outcome?


I am not sure what is so difficult about the maths. (and if one were into conspiracy theories, which I am not, it would support the OPs position, not serve as evidence against it)

 

The dispute is over $ 2000 (as an example)

Arbitration fee is $ 291.

 

The freelancer wins - it costs Upwork $ 291 (for the arbitration fee) 

The client wins - it costs Upwork $ 541  ($ 291 and the $ 250 service fee from the $ 2000 that is being returned to the client.)

 

Preston H wrote:

Successful, effective clients don't use these features.


Oh they do. They just only use them very rarely and when it makes sense and all other options have failed. Obviously for clients with a tiny average contract value they don't make sense because the amounts in question are simply not worth it.

 

AveryO
Community Manager
Community Manager

Hi Will, 


I'm sorry to learn about your experience. I wanted to note that arbitration is a binding non-appearance based Arbitration by a neutral third party. In this case, Upwork is not involved in the final ruling made by the third-party arbitrator. 

As this case has already been escalated further, I would definitely recommend that you refer to your tickets for more information. On my end, I will make sure to notify the team so that you can be assisted further. 


~ Avery
Upwork

The original poster has a complaint about the arbitration process.

 

I'm not surprised.

It is not Upwork's intention that any contract end up in arbitration.

 

Think of arbitration as a sort of "safety valve" for if things go terribly wrong with a fixed-price contract. These contracts use escrow. The use of a true escrow process necessitates the availability of arbitration.

 

Arbitration is like the ambulance and on-set medic present when an action movie is being filmed. It is never anybody's intention that these be used. They are present in case things go terribly wrong.

 

If you are a client, then the proper way to use Upwork is to plan on never using refunds, disputes, or arbitration. Decide from the beginning that these are not possibilities for you and your business. Instead of planning to use these "magic reset buttons" (which may end up NOT working in your favor!)... the right way to use Upwork is thoughtfully and proactively. Monitor the work that freelancers submit and simply stop working with underperforming freelancers.

 

Refunds, disputes and arbitration may make sense for FREELANCERS to use. Generally speaking, the presence of these is more harmful than helpful to clients. Successful, effective clients don't use these features.

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