Dispute Assistance
Less than 1% of jobs on Elance require Dispute Assistance. However, in the event that a dispute does arise, it is important to know that there is a well-defined process in place to assist both parties in reaching a mutually acceptable outcome.
What Happens When I Can’t Resolve a Dispute?
How does Elance Dispute Assistance Work?
How Much Does Arbitration Cost?
How Do I Protect Myself in Case of a Dispute?
I Now Have a Dispute, Where Do I Start?
Does Arbitration Apply to Jobs Where Parties are Located in Different Countries?
My Provider is Asking for a Down Payment. Is This Customary?
What Happens to Funds That I Previously Released From Escrow?
What Happens When I Can’t Resolve a Dispute?
If a client and a provider using the Elance Work System are unable to resolve a problem independently, Elance provides a well-defined process to help both parties reach a resolution. Elance Dispute Assistance is available for jobs managed within the Elance Work System and funds held in Escrow.
How Does Elance Dispute Assistance Work?
Elance Dispute Assistance is a three step process. The first step is for both parties to attempt to find a resolution independently by documenting the disagreement and the expected outcome in the Dispute Notice Form. The second step is a dispute assistance call facilitated by Elance. If a resolution is still not reached, either party has the right to move to the final step of the process, which is Arbitration.
For more information on the dispute assistance process, please click here.
What is Arbitration?
Arbitration is an alternative to taking someone to court and a way to receive a final judgment by an independent third party. It is typically far less expensive than court and the judgment is enforceable in a court of law. Elance will take the arbitration judgment and require that both parties abide by the ruling. If the first two steps of Elance Dispute Assistance do not reach a conclusion, Elance will pay 1/3 of the cost for the parties to move to arbitration (up to $600).
How Much Does Arbitration Cost?
Elance has established preferred terms with an accredited arbitration service and a process for the transfer of all relevant case material, such as the Dispute Notice and Response, Workroom communications, Status Reports, and Terms as negotiated and accepted on the site. The cost for arbitration varies depending on the size of the job. Jobs under $1000 are reviewed by a single arbitrator and cost $299. This cost is shared equally by the client, the provider, and by Elance (or $99 per party). Jobs greater than $1000 are reviewed by a panel of 3 arbitrators and cost $599 (or $199 per party). In both cases, Elance subsidizes one third of the cost, up to $600.
How Do I Protect Myself in Case of a Dispute?
- Over communicate. Many disputes arise from missed expectations and assumptions made up front. Make sure that the other party is clear on requirements or terms and that you are agreeing on the same thing.
- Always pay your provider using Elance Escrow. Only release funds once you have had the chance to inspect and accept the work and make sure these release conditions are clearly specified and agreed to up front.
- Providers should not begin work until funds are held securely in escrow. Make clear the conditions under which work will begin.
- Use the Elance Work System: Define very clear milestones as checkpoints on job quality and progress. Payments can be tied to these milestones. These milestones are defined in the Terms step just before you award the job to the provider.
- Communicate using Elance. This assures your Workrooms have a record of communications that will be referenced in the case of a dispute.
- Require your provider to submit weekly status reports through Elance.
- Providers, always indicate current job status and highlight any issues that may impede your progress in the weekly status report.
- Keep your Terms up-to-date. If the schedule, scope, or amount changes, be sure to update the Terms on Elance. Remember, this is the official agreement between both parties that will be referenced in the case of a dispute. If you cannot agree on updated Terms, then it may be an indication that you have a dispute.
I Now Have a Dispute, Where Do I Start?
First, remain professional in all communications. Unprofessional communication will undermine your case. Both parties have already agreed to abide by the Dispute Assistance process as part of the Terms of Service so you can be sure there will be a resolution regarding the funds held in escrow.
- File a Dispute Notice available within the Workroom under the "I want to..." menu item in the left navigation panel. Detailed instructions for initiating a dispute are available here. The other party is notified and is required to respond to the Dispute Notice within 3 business days.
- Attempt to reach a resolution regarding the dispute without involving Elance. If no compromise can be found, Elance will contact both parties to arrange a dispute assistance call.
- If no resolution is reached during the Dispute Assistance conference, arbitration is the final step in the process. Either party may initiate arbitration. If requested, the other party is required to attend, otherwise, the release condition for escrow funds is met and the funds are released to the party initiating arbitration. If neither party requests arbitration, all funds in escrow will be returned to the client 6 months from the final milestone date.
Does Arbitration Apply to Jobs Where Parties are Located in Different Countries?
Since both the client and provider have agreed to the Elance Terms of Service, both must abide by the Dispute Assistance process until a final resolution is reached in case of a dispute, regardless of location. This means that if one party does not fulfill their obligations by participating, then the release condition for the funds is met and escrow funds are released to whichever party participated in the Dispute Assistance process.
My Provider/Client Stopped Responding to My Requests for Communication, Payment or Work. What Can I Do?
If one party becomes non-responsive for a period of more than 5 business days, contact Elance to get help. In cases where there are funds held in escrow, if the party is non-responsive to the Dispute Assistance process, then the release condition for the funds is met and the funds are released to the responding party.
My Provider is Asking for a Down Payment. Is This Customary?
Some providers may require a down payment before they will begin working on a job. When working remotely online, Elance recommends depositing a down payment into escrow, but not releasing funds until the first milestone has been delivered and reviewed to your satisfaction. Escrow is an important protection for both parties when working online. If your chosen provider refuses to begin work until funds are released from escrow, you may want to consider finding a provider that will begin working when funds are securely held in the escrow account before they are released.
What Happens to Funds That I Previously Released From Escrow? Can I Get Them Back?
It is important that you inspect the quality of work delivered before releasing the funds in escrow. Define your milestones at specific points in the job where you can inspect and sign off on the work performed. Once you release funds from escrow, you cannot recover them.
