As a freelancer, how am I protected in Upwork?

[skimsketch]

Hello everyone,

I'm sure this topic has been brought up multiple time in this community and I feel bit hesitant to ask. But, I figured I should get some community clarification on protection as a freelancer. I read on how the escrow system works and how we have some type of protection while at the same time, not really (there was one where I read someone who didn't get paid, but then the criteria to dispute was to pay around 200$ or so)? 

Is there a way to gurantee more protection than the escrow system? What's the protection about fixed rates vs hourly rates? Do we pay for that (like insurance ?) or is it provide by Upwork (I really hope it's provided...)? 

Thank you for taking your time for writing a response. 

[prestonhunter]

Do not think of escrow as "protection."

If you want protection then use hourly contracts.

Escrow is escrow. A client can still jam you up if you have a fixed-price contract. Upwork won't protect you. You need to understand how fixed-price contracts work, and protect yourself.

Fixed-price is a more complex contract model than hourly. If you don't feel that you can use fixed-price effectively, then only do hourly.

If you accept a fixed-price contract with a new client (meaning a client you have not worked with before) then accept only a small milestone. No more than an hour or two worth of work.

For example, if the client wants you to do 100 modules, then tell him that'll be fine, but the first milestone will be to do 1 module.

Do the work. Click then "Submit Work for Payment" button.

If the client releases payment, then this shows that then client may be an acceptable fixed-price client. Agree to another milestone, perhaps a bit larger. You may continue to agree to increasingly larger milestones as long as the client consistently releases payment and funds the next milestone.

BUT: If the client does not release payment or if the client asks you to do ANYTHING out of scope, anything not written down in the task agreement, then you stop working for the client using fixed-price contracts. You have not invested too much time. You can close the contract yourself and walk away.

If the client asks for out of scope work, then tell the client you will do the work if he either releases the current escrow payment and sets up a new hourly contract, or releases the current escrow payment and sets up a new milestone. BUT DO NOT DO OUT OF SCOPE WORK for free.

If the client simply refuses to release payment, then wait for Upwork to release payment automatically. If the client blocks payment, then you can just close the contract. You are done with him. You only worked for one hour. You don't need to waste any more time with him.

This is how you protect yourself without needing to ask Upwork for help, without needing to gamble with disputes or mediation.

[prestonhunter]

re: "Do we pay for that (like insurance ?) or is it provide by Upwork (I really hope it's provided...)?"

It is provided. You do not pay extra.

re : "but then the criteria to dispute was to pay around 200$ or so"

Going to dispute costs nothing. But Upwork doesn't decide anything. Just encourages client to come to an agreement with freelancer. Going to arbitration costs freelancer $291. (Not $200)