Logging manual time is not optimal so I tried to avoid it due to the lack of coverage and protection from Upwork. However, I have a client with strict security requirements. I work on a separate laptop for this client that they shipped to me for the work I do. I have to log into a VPN to access their systems and I am not allowed to have my desktop screen captured when I am on their computer doing work for them. Therefore all of my time for them is manual. Should I be doing anything different?
Also there are other less common scenarios where screen capturing is not optimal, for example I was creating a video for a client and the Upwork scren capture notification flashed when I was creating the video, causing me to have to redo the video again.
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I would imagine that if the client has sent you a laptop to work from, they are unlikely to not pay you for your work. Screen captures are mainly to allow you to gain payment from Upwork should your client fail to honor your agreement.
Your client is treating you as a professional, working with you in an atmosphere of mutual trust. I recognize that because it's the way I work with my freelancers. I'ved never seen a screenshot, and I don't require professionals to punch a time clock. I just pay whatever they bill. Savor the client relationship.
In addition to what Tonya and Bill have said, Upwork seems blind to the fact that many of us sign NDAs with numerous clients ... and allowing screenshots of our 'puters' negates them
OP, your client obvously has highly sensitive data and trusts you implicitly.