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Shannon's avatar
Shannon L Community Member

Contract-to-Hire Opportunities

We’re making it easier for talent open to full-time work to find contract-to-hire opportunities on Upwork.

 

Check out the product update for Contract-to-Hire Opportunities, and let us know your thoughts about this update in the comments below.

51 REPLIES 51
Martina's avatar
Martina P Community Member

Dear Upwork, please explain what this is. A few questions:

1. Will upwork support the relationship between client and freelancer/later employee with payroll, HR, the legal framework (and quite frankly, nightmare) of employing a person that resides in a different country?

2. What timeframes are involved from freelancing to full time employment? Opt-out fee? Exit process?

3. Are the ToS updated to reflect changes, if any?

4. Isn't this the old zombie way of working?

But I digress. You need to get the scammer problem under control before doing stuff like this. Scammers will jump on this, with a new and convenient angle. Among others, the company ID scam just became better and more convincing.

Please provide details. 

 

 

 

Nichola's avatar
Nichola L Community Member

I've just seen this too - and I don't really see the point of it, unless there is some hidden agenda. I'm sure there must be plenty of freelancers, who already work on a long-term basis. What's the advantage for either client or freelancer? 

Martina's avatar
Martina P Community Member

I see more advantages to the employee like severance pay and severance periods, for the company it's more expensive with all the additional taxes and social security payments.

No company willing to forgo the flexibility of hiring freelancers will be agreeing to pay upwork any fees for this arrangement, so I'm really interested in hearing all the detail how this is going to work. 

 

Julie's avatar
Julie J Community Member

Do you have a link? I'd like to see what this is. I have a client that wants to hire me but will have to wait until June 2023 to avoid the opt out fee.

 

Thanks!

 

Martina's avatar
Martina P Community Member

It's just a box you can check on your profile.

There is absolutely no further information on it, which I why I try to find out more here. 

Daniel's avatar
Daniel G Community Member

I couldn't find any information from the updates sections also. I am also curious about this.

Regards,
Daniel
Adham's avatar
Adham A Community Member

Stanley Uchenna's avatar
Stanley Uchenna M Community Member

I beg to differ here. This could really come handy especially for those who wish to grow on a particular career track.

Rahul Kumar's avatar
Rahul Kumar D Community Member

Valeria's avatar
Valeria K Community Member

Hi Martina and others,

 

I've moved your comments to the feedback thread about this feature and encourage you to check out the update that's now posted here for more information. 

~ Valeria
Upwork
Ahad's avatar
Ahad J Community Member

Hello everyone, I have a question there is new filter in job filter called "contract to  hire". can anyone tell me about it ?

Abul Kalam's avatar
Abul Kalam A Community Member

Are you open to contract-to-hire? What is its purpose? For what kind of freelancers have such arrangements been made? How can I benefit from this?
Looking forward to the opinion of the experienced.

Martina's avatar
Martina P Community Member

Never. It defies the purpose of freelancing.

I doubt there are many clients coming to upwork to hire full-time. 

I have no idea how it is supposed to work when the employer and client don't reside in the same country. The freelancer doesn't benefit from the healthcare/ social security benefits in the client's country, and the client can't hire him in a legal entity in the freelancer's country because he doesn't have one. 

Elisa's avatar
Elisa B Community Member

"Then, if both parties agree to the working relationship, the job might turn into full-time employment at the conclusion of the contract."

 

This also contradicts the "don't put all your eggs in one basket" golden rule... 

Martina's avatar
Martina P Community Member

And this just after upwork told employers they are ugly old zombies when they hire employees... talk about mixed messages.

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Maybe it is only an indicator, ie if a client has been working with you for a long time, maybe it is a trigger to suggest to them that you are open to a more monogamous relationship, still maintaining the remote/no costs associated with normal employees.

 

Other than that I cannot see any other reason for it, and even then I think the potential for such a thing is extremely remote.

 

Martina's avatar
Martina P Community Member

Yes, possible. 

But if you are a client on upwork and see that option on a profile, and you are interested in it, you would expect upwork to provide at the very minimum a guideline how to do it. It is a major change to a freelancing platform encouraging freelancers to look for full-time employment. At the other end of the spectrum, a client might expect upwork to provide a framework how to process the whole relationship, in the same way upwork offers payroll services (for US people, I assume). Now people will expect that to be extended to more countries. 

Amanda's avatar
Amanda L Community Member

I think Upwork continues to confuse the independent professional with the temporary employee. They have different needs and want different things. More and more Upwork is beginning to resemble a temp agency. 

Martina's avatar
Martina P Community Member

Ok, so this is nothing new. A client has to pay the same opt-out fee as before. But now he can hire the person full-time. Again, same as before. There was never a restriction of what can happen after the opt-out fee is paid. Nobody will pay the very high opt-out fee and not getting anything in return. What is the benefit to the client if upwork does not support payroll and everything that comes with it for people most likely not residing in the same country as client? If the freelancer is hired by the company in country A, but resides in country B, there are two ways to do that: company has a legal entity in country B and hires freelancer from there, but this is unlikely. Company hires freelancer in country A, which means he pays salary and benefits in country A. What is the freelancer to do when he gets sick? Fly to country A? How will he get his pension benefits? Are the former freelancers treated equally with the other employees of company? Will there be a class-action lawsuit if they are not?

Well maybe upwork assumes that their 75% US client base will not hire outside of the US. Might very well be true. But what if it isn't? Just slapping a different label on the opt-out fee is not worthy of a large corporation, do better. 

 

Valeria's avatar
Valeria K Community Member

Martina,

 

You are correct, the conversion fee and the process clients can initiate to request a contract conversion aren't new.

The contract-to-hire feature is new and it allows clients to label a job post as a contract-to-hire opportunity to let talent know this contract has that potential. It also enables talent to show their interest in contract-to-hire opportunities and search for such jobs. Upwork will highlight contract-to-hire opportunities for interested talent so people open to full-time opportunities can identify them, but there is no obligation to do so.

 

~ Valeria
Upwork
Mary Margaret's avatar
Mary Margaret G Community Member

I am curious about the conversion fee and  process clients in a bit more detail.

  • Could you utilize this for Part-time as the contract-to-hire? = MaryG
Nikola's avatar
Nikola S Retiring Moderator

Hi Mary,

 

I would be happy to help. If a client would like to hire someone they found on Upwork as a full-time employee, they'll need to follow the contract conversion process and pay the Upwork Conversion Fee. Then, they would be approved to handle payment and contracts on your own. To start the conversion process:
 
  1. Go to Jobs > All Contracts
  2. Choose a specific contract under All contracts and select the (…) menu
  3. Select the Request contract conversion button to start the conversion process

 

Here is more information about the process and the way the fee is calculated.
~ Nikola
Steven's avatar
Steven T Community Member

Since Upwork added this feature I keep seeing posts that are contract to hire and I find it discouraging.

 

I don't want to work under the conditions of a typical employee, that's why I freelance. I don't want to flog myself so that somebody makes a bit more profit, I don't want reponsibility for something that I don't own, I don't want to deal with company politics. I don't want a job title, to impress 'the boss' or to be let down when the company pivots away from what I'm doing.

 

Plus, I don't want the client thinking I intend to devote myself to their company. Don't get me wrong, I will devote myself to the work I do, I want to produce the best result I can and I always try to support it. I'm happy to do follow on, extend the project, deal with team members and so on. But what motivation is there to be involved beyond that?

 

I don't see employment as a reward, its just limiting my options. So dangling it in front of me like a carrot achieves nothing. Does anyone else feel this way or is it just me?

Martina's avatar
Martina P Community Member

And we all know that the opt-out fee was supposed to be cost-prohibitive so the relationship stays on upwork for two years. Nobody is going to be willing to pay it just for the privilege of hiring someone full-time.