Hire outside of Upwork

[2867b9af]

If I have success with someone I hire and want to hire them to do more work on a regular basis, am I locked into hiring that person through UpWork for future work and/or is there a process to do so legally (I am not interested in doing anything against Upwork rules and that is illegal)?

Thanks,

[bobafett999]

Sure. you can do that if you pay Upwork some money (I believe it is about $2,500).

[yitwail]

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@Prashant P wrote:

Sure. you can do that if you pay Upwork some money (I believe it is about $2,500).

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 Actually, as of May 20, the opt-out fee will be $3500 minimum:

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

But after 24 months, there's no fee.

[cylver1z]

Hello David,

Regarding to our ToS User Agreement (7. Non-circumvention): 

You acknowledge and agree that a substantial portion of the compensation Upwork receives for making the Site available to you is collected through the Service Fee described in Section 6.1 (“Service Fee”). Upwork only receives this Service Fee when a Client and a Freelancer pay and receive payment through the Site. 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.

To pay the Opt-Out Fee, you must request instructions by sending an email message to optoutfee@upwork.com.

Except if you pay the Opt-Out Fee, you agree not to circumvent the Payment Methods offered by the Site. By way of illustration and not in limitation of the foregoing, you must not:

• Submit proposals or solicit parties identified through the Site to contact, hire, work with, or pay outside the Site.
• Accept proposals or solicit parties identified through the Site to contact, deliver services, invoice, or receive payment outside the Site.
• Invoice or report on the Site or in an Opt-Out Fee request an invoice or payment amount lower than that actually agreed between Users.

You agree to notify Upwork immediately if another person improperly contacts you or suggests making or receiving payments outside of the Site. If you are aware of a breach or potential breach of this non-circumvention agreement, please submit a confidential report to Upwork by sending an email message to: policy-reports@upwork.com.

If you refuse to accept any new version of the Terms of Service or elect not to comply with certain conditions of using the Site, such as minimum rates supported on the Site, and therefore choose to cease using the Site, you may pay the Opt-Out Fee for each other User you wish to continue working with on whatever terms you agree after you cease using the Site.

[bobafett999]

This raises another question.  What if you hired someone on Upwork as a freelancer, but you liked them so much that you want to hire them as your employees. 

In US the law varies by states.  I am pretty sure that if you were in CA, Upwork can not do anything by law.  CA labor laws prohibit anyone's ability to make a living by holding them hostages.

[AveryO]

Hi Prashant, 

A client is free to engage the Freelancer off platform at any time as an independent contractor or employee, but the opt-out fee will need to be settled.

[yitwail]

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@Ryan C wrote:

Hello David,

Regarding to our ToS User Agreement (7. Non-circumvention): 

You acknowledge and agree that a substantial portion of the compensation Upwork receives for making the Site available to you is collected through the Service Fee described in Section 6.1 (“Service Fee”). Upwork only receives this Service Fee when a Client and a Freelancer pay and receive payment through the Site. 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...

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Ryan, Upwork makes it difficult to link to the updated User Agreement opting out section, so I'm attaching a screenshot, which repeatedly shows $3,500. Is that incorrect, or is it increasing to $3,500 on May 20?

[AveryO · Accepted solution]

Hi John, 

Thanks for clarifying this section of the ToS. 

Ryan noted this section of the User Agreement that will remain in effect until May 20 for users who registered before the Updated User Agreement. 

The Updated User Agreement is effective on May 20, 2018 for all Users who registered before it was posted and effective when posted for everyone else.

[4e80120c]

Does UpWork boast some talent pool outside of Indeed?  OR some value over such?  I have found a good candidate through UpWork but not sure I'd recommend to others

[prestonhunter]

re: "Does UpWork boast some talent pool outside of Indeed?"

Yes. Upwork has an extremely large number of talented freelancers who are not available through Indeed.

re: "OR some value over such?"

Yes.

There is an extensive amount of functionality that Upwork has which Indeed does not have.