Work on
UPWORK

14.06.2017 | Debt collection in IT
1 Star2 Stars3 Stars4 Stars5 Stars (11 votes, average: 4.91 from 5)
Loading...

Work on upwork brings an income to many freelancer, and moreover this income is not little and some people think, that it is enough to have some knowledge in certain spheres and English-skills to create its own profile on this particular site and look for work.

Upon that, few people analyze User agreement between freelancer and Upwork Global Inc. However, according to the content of the User agreement it follows, that it is not enough to possess certain knowledge in some spheres and have English-skills, but freelancer must to be either private entrepreneur or to create a legal person (it has no relation to you, if you are an employee of already registered on the site legal person, other sections of the User agreement apply to this person).

So, in accordance with section 3 of User Agreement «To use the Site and certain Site Services, you must register for an Account. Upwork offers the Site and Site Services for your business purposes only, and not for personal, household, or consumer use. To use the Site and Site Services, you must have, and hereby represent that you have, an independent business (whatever it be as a self-employed individual/sole proprietor or as a corporation or other entity) and further represent that you intend to use the Site and Site Services solely as an employee and Agency Member of a registered Agency Account. You understand that you must comply with any licensing or registration requirements with respect to your business, and you represent that you comply with all such requirement. To register an account, you must be, and hereby represent that you are, a legal entity or an individual 18 or older who can form legally binding contracts».

Consequently, carrying out look for job on the Site, people must admit the characteristics of the economic entity.

According to the section 4 of the User agreement «The Site is a marketplace where Clients and Freelancers can identify each other and advertise, buy, and sell Freelancer Services online. Subject to the Terms of Service, Upwork provides the Site Services to Users, including hosting and maintaining the Site, enabling the formation of Service Contracts. If Users agree on terms for Freelancer Services, a Service Contract is formed directly between such Users, subject to the provisions set forth in Section 5 (Contractual Relationship Between Client and Freelancer), unless you are enrolled in Upwork Payroll. When a User enters a Service Contract, the User uses the Site to engage, communicate, invoice and pay online».

According to the Art.1 of the Civil Code of the Republic of Belarus, the entrepreneurial activity is an independent activity of legal and natural persons, implemented by them in civil circulation under their personal name, at their risk and under their property liability, directed at systematic getting profit from property using, selling the things made, processed or gained by the before-mentioned persons for selling, as well as from performance of works or rendering the services, if these works or services are intended to realization to other persons and are not applied for own consumption.

Consequently, physical person, registered on this Site and rendering freelance services, carries out entrepreneurial activity and has corresponding income from entrepreneurial activity, from which it is necessary to pay some corresponding payments to the budget (these legal provisions do not apply to the received money, if the physical person was employed as an employee under an employment agreement by the Client of the Site).
In addition, if a person is not registered in appropriate way, but renders the freelance services, conducts entrepreneurial activity and has the income from entrepreneurial activity, from which it is necessary to pay corresponding payments to the budget (this provisions do not apply to money received, if physical body was engaged as an employee under an employment contract by the Client of the Site).

And if a person is not registered in appropriate way, but renders the services, including the services on this Site, which provides rendering the services only for entrepreneurial purposes, such a person can be prosecuted, as it is provided by the Art.233 of the Criminal Code of the Republic of Belarus.

Consequently, prior to rendering the services on this Site, the status of the economic entity in accordance with the legislation of the Republic of Belarus should be obtained.

Considering the agreements on rendering the services, made with the help of upwork Site themselves, the following should be noticed: in case, if a Party of the agreement on rendering the services, made on the Site, between the freelancer – the resident of the Republic of Belarus is not a resident, than at this agreement will apply the provisions of the Presidential decree № 178 from 27.03.2007 «On the procedure of conduct and control of foreign trade operations» (hereinafter – Presidential decree),as long as it will be a foreign trade agreement.

Consequently, if a freelancer (economic entity) receives money within the framework of a foreign trade services agreement, then it must, in accordance with sub para. 1.16.1. of a Presidential decree, not later than 7 working days from the date crediting to the bank account of funds received from the export of goods (information protected, exclusive rights to the results of intellectual activity), works performed, services provided, deliver to bank documents (information), necessary for carrying out functions of a currency control agent by the bank.

When concluding these foreign trade agreements concluded on the site, it is especially necessary to pay attention to para. 1.4. of the Presidential decree, according to which, residents must provide the completion of a foreign trade transaction to the full extent within the following terms, except for cases provided in part five of this subpara. and part one of the subpara 1.5. of this para.:

  • in export – no later than 90 calendar days (under commission agreement – no later than 120 calendar days) from the shipping day (transfer of information protected, exclusive rights to the results of intellectual activity), works performed, services provided;
  • in import – no later than 60 calendar days from the date of making the payment.

In accordance with para.6.3. of the User agreement «Upwork does not introduce Clients to Freelancers and does not help Freelancers to secure Engagements. Upwork merely makes the Site Services available to enable Freelancers to do so themselves. Therefore, Upwork does not charge a fee when a Freelancer finds a suitable Client or funds an Engagement. However, a Client and a Freelancer are obligated to use the Site to pay and receive payment for their work together if they identified each other through the Site, as detailed in Section 7 (Non-Circumvention), below».

Consequently, all the payments, if a foreign trade agreement is concluded with the help of the Site, are conducted by means of the Site Upwork. However, this fact can lead to violation of the provisions of the Presidential decree on the repatriation of fund, because, in accordance with para. 6.4. of the User agreement «Under the relevant Escrow Instructions, EEC automatically disburses funds that are payable to a Freelancer for the Engagement (less any applicable Upwork fees) to Freelancer within 90 days after the Freelancer Fees are due and payable from Client (or for amounts less than 100$, within 180 days after the Freelancer Fees are due and payable from Client)».

In case of possibility of violation of the terms of repatriation of funds it is necessary to receive the National Bank (its main administration across region) permit to extend the term for the completion of a foreign trade transaction with next National Bank notice in order, determined by National Bank about the completion of this foreign trade transaction in case, provided by the agreement or the actual period for goods receipt (information protected, exclusive rights to the results of intellectual activity), works performed, services provided or receipt of money for transferred goods (information protected, exclusive rights to the results of intellectual activity), works performed, services provided exceeds a period, provided by the legislation (para. 1.16.1 of a Presidential decree).