White-label “partners” on Upwork keep the client contract and escrow. When they pocket the payout and ghost you, Upwork won’t mediate—your claim is against the agency itself. This widget helps you triage leverage, map the law, and build a demand letter that gets their attention.

How It Starts

Agency invites you behind the scenes, holds the client contract, promises to pass through payment once the client pays.

Where It Breaks

Client milestones close, your work is live, but the agency claims “client hasn’t paid” or vanishes entirely.

Why Upwork Won’t Help

Upwork pays the agency; agency must pay you. Internal agency disputes fall outside Upwork’s dispute scope.

When to Escalate

Partner confirms client payment, keeps using your work, ignores written pay requests. Time to formalise the debt.

Stage 1 – Project Onboarding Clear scope, rate, and payment channel agreed (Upwork messages, email, or subcontract agreement).
Stage 2 – Delivery & Client Payment You ship, partner acknowledges, Upwork releases funds into agency account.
Stage 3 – Stalling & Excuses “Client unhappy,” “cash-flow issues,” “waiting on Upwork” despite evidence of payout.
Stage 4 – Demand Letter Document the facts, set a payment deadline, reserve the right to notify the end client or sue.
Signal check: If the agency refuses to show client payment status, won’t sign internal agreements, or diverts your questions, lock down evidence before they disappear.

Agency Account Flow

All client payments hit the agency’s Upwork financial account. Upwork does not split funds among members; the agency must distribute them.

Agency Member vs Direct Contract

As an agency member you can’t file disputes against the client. If the agency contracts with you separately on Upwork, you regain dispute tools.

Subcontracting Rules

Upwork lets users subcontract but holds the prime responsible to the client. Subcontractors remain outside the client contract unless separately engaged.

Payment Protection Limits

Hourly/FPP protection only applies to the party holding the Upwork contract. Internal subcontract payments are unprotected unless you set up your own contract.

Why Upwork Won’t Mediate
The User Agreement makes service contracts strictly between the client and the agency/freelancer who accepted the job. Upwork releases funds per escrow rules and is done. Internal sharing is up to the agency; Upwork explicitly disclaims liability for it.
Smart Structuring Tips
Whenever possible, have the prime hire you via a separate Upwork contract (they’re the “client,” you’re the freelancer). That restores Hourly Payment Protection and fixed-price dispute rights. Without that, you need a direct subcontract agreement covering scope, rates, and payment triggers.
Agency reality: “We can’t pay you until Upwork pays us” is an internal cash-flow choice, not a legal defense. Their client contract doesn’t shift risk to you unless you agreed to it.

Pressure Matrix

Contract Breach
Written or message-based agreement for your services + non-payment = classic breach claim.
Quantum Meruit
Even without a formal contract, they requested and use your work. Law implies payment of reasonable value.
Unjust Enrichment
Agency keeps client’s payout while you absorb costs. Demand letter highlights that inequity.
Client Notification
A calm notice to the end client that you remain unpaid (if contract allows) can nudge a resolution.
Agency member mode: reference Upwork’s own statement that agencies are solely responsible for compensating members. Attach screenshots showing client payment dates from the agency dashboard.
Anti-Retaliation Considerations
If you threaten to torpedo their Upwork rating, you risk mirroring the same feedback manipulation Upwork forbids. Stick to contractual facts, reserve the right to inform the end client, and note that you’ve reported any policy violations through Upwork channels.

Demand Letter Skeleton

1) Identify parties/project. 2) Recount agreed scope and rate. 3) List deliverables + evidence of client usage/payment. 4) State amount outstanding. 5) Set deadline + consequences (notify client/legal action). Keep it factual and professional.

Project & Relationship
Name the end client, explain that the agency held the Upwork contract, and confirm your role (subcontractor/agency member). Mention dates and channels (Upwork messages, email) where terms were agreed.
Work Performed
Bullet what you delivered, with dates. “Jan 5: delivered landing page build; Jan 9: supplied ad copy set; Jan 15: joined client call confirming deployment.”
Payment History
State what was paid (if anything) and what remains due. Note any messages where the partner admitted the client paid them or promised to send your share.
Demand & Deadline
Example language: “Please remit $4,200 (remaining project fee) within 10 calendar days via [channel]. If we cannot resolve this by [date], I will notify [client] that their project remains unpaid on my side and pursue formal remedies.”
Email-ready closer: “I’ve fulfilled the scope we agreed for [client]. You confirmed their payment on [date], but my $[amount] remains outstanding. Please confirm payment plans by [deadline] so we can avoid involving the client.”

Evidence Checklist

Scope & Rate Proof

Upwork chats, emails, or agreements showing what you were hired to do and how much you would be paid.

Delivery Records

Files, Git commits, Loom videos, meeting notes confirming handoff to the partner/end client.

Client Payment Evidence

Screenshots the partner shared, public launch dates, or Upwork transaction histories showing milestones paid.

Payment Requests

Messages where you asked for payment and were stalled, plus any partial payments received.

Partner Identity

Legal name, business entity, address, and any alternate emails/phones for service of process.

Resources

Upwork: How agency membership works Upwork: Work for an agency (payment responsibilities) Upwork User Agreement (service contract privity) Upwork Escrow Instructions / subcontracting clause Upwork: Fixed-price dispute process Upwork: Hourly dispute mechanics Upwork: Fixed-price payment protection Cornell LII: Quantum meruit Sanderson: Unjust enrichment vs quantum meruit Upwork: Subcontracting tips