Online freelancing

[Naseem]

Hi,
First, let me give a brief background. I work online as a freelancer graphics and web designer. I use a freelancing website where projects are posted and are open to bidding. When a bid is accepted by the project poster (employer), they deposit some or full payment involved in the project with the website and that money is held with the site as security for payment. This is called milestone payment and will be released to me (employee) after successful completion of the project. A milestone can not be cancelled by the employer. The site earns their fee as commission from each project as well as membership fee.

Now coming to my concern. At times the milestone is cancelled by the site for reasons not known to me (they call is things like account violation by the employer) and this happens without any notification to the employee. This causes serious loss on part of the employee and the site refuses to take any responsibility. I would like to ask you, what legal measures I can take to get my money in such situations.

Thank you

 

[adjusterjack]

You need to understand something here. I don't think the words employer/employee apply to you. You are self employed and perform service to clients for a fee. That you obtain these clients through that website doesn't change that. I hope you are reporting your income on Schedules C and SE (to name just two) and have appropriate professional liability insurance.

As to your problem with the website, you've agree to its terms and conditions. As long as the client can prove that he paid, your remedy is to sue the website.

If he didn't pay, your remedy is to sue the client.

If you don't like the consequences of your use of that website you are free to stop using it.

 

[quincy]

Hi,
First, let me give a brief background. I work online as a freelancer graphics and web designer. I use a freelancing website where projects are posted and are open to bidding. When a bid is accepted by the project poster (employer), they deposit some or full payment involved in the project with the website and that money is held with the site as security for payment. This is called milestone payment and will be released to me (employee) after successful completion of the project. A milestone can not be cancelled by the employer. The site earns their fee as commission from each project as well as membership fee.

Now coming to my concern. At times the milestone is cancelled by the site for reasons not known to me (they call is things like account violation by the employer) and this happens without any notification to the employee. This causes serious loss on part of the employee and the site refuses to take any responsibility. I would like to ask you, what legal measures I can take to get my money in such situations.

Thank you

What is the name of your state or, if not in the US, what is the name of your country?

Out of what state or country is the website based?

 

[Naseem]

What is the name of your state or, if not in the US, what is the name of your country?

Out of what state or country is the website based?

Hi, I am not in the US, I am from Pakistan.
The website is based in Australia

 

[Naseem]

You need to understand something here. I don't think the words employer/employee apply to you. You are self employed and perform service to clients for a fee. That you obtain these clients through that website doesn't change that. I hope you are reporting your income on Schedules C and SE (to name just two) and have appropriate professional liability insurance.

As to your problem with the website, you've agree to its terms and conditions. As long as the client can prove that he paid, your remedy is to sue the website.

If he didn't pay, your remedy is to sue the client.

If you don't like the consequences of your use of that website you are free to stop using it.

Hi, Thank you for the reply.
Let me clarify that I am residing in Pakistan so I believe Schedule C or SE do not apply in my case.
The terms of employer and employee are used in the 'Terms and Conditions' of the website so I assume I need to stick to that.

The situation here is that the website is working as a guarantor for 2 parties, 1 Seeking so services and other providing those services.
Once both parties agree on a deal, the website holds the money which is assurance for the party providing the services that they will get paid after they complete their part. In my case after I delivered the services, the website tells me they had returned the money to the first party because they had violated the terms. I see this as a scam as I was never informed of the violation or their decision to refund the money.

Talking about the terms and conditions, when I complained, they refer to this section of their terms of use;

18. Limits & Fraud Prevention

We reserve the right to suspend a User withdrawal request if the source of the funds is suspected to be fraudulent.

If we become aware that any funds received into an Account from another Account as a result of a fraudulent transaction, this will be reversed immediately. If those funds have already been released to you, you must pay the funds into your Account. If you do not do so, we may suspend, limit or cancel your account, or take action against you to recover those funds.

We may, in our sole discretion, place a limit on any or all of the funds in your Account (thereby preventing any use of the funds) if:

1. we believe there may be an unacceptable level of risk associated with you, your Account, or any or all of your transactions, including if we believe that there is a risk that such funds will be subject to reversal or chargeback;
2. we believe that the beneficiary of the payment is someone other than you;
3. we believe that the payment is being made to a country where we do not offer our Service; or
4. we are required to do so by law or applicable law enforcement agencies.

If you are involved in a dispute, we may (in certain circumstances) place a temporary limit on the funds in your Account to cover the amount of any potential liability. If the dispute is resolved in your favour, we will lift the limit on your funds and those funds may be released to you. If the dispute is not resolved in your favour, we may remove the funds from your Account. We may also place a limit on your account in circumstances where we suspect you of fraudulent or other unacceptable behaviour, while we investigate any such matter.

 

[quincy]

FreeAdvice handles US law questions only, Naseem. You will want to find a solution in Pakistan.

Good luck.

 

[eerelations]

FreeAdvice handles US law questions only, Naseem. You will want to find a solution in Pakistan.

Good luck.

Agree. It's Pakistan law that will apply to your situation.

 

[Naseem]

Thank you both for the advise.

Are you suggesting I should consider filing a suit against a a site located in Australia here in Pakistan?

 

[quincy]

You should speak to an attorney in Pakistan who can advise you on whether pursuing a legal action in Australia is the best course of action or if there are other, better options to consider instead.

Good luck.