What is Upwork contract-to-hire?
Upwork contract-to-hire is the official path for a client to move a freelancer they met on Upwork into a full-time role or any other direct working relationship off the platform. On the client side, a job can be posted as a contract-to-hire opportunity. On your side, you can mark yourself as open to it so those clients can find you. When both sides want to make it permanent, the client starts a contract conversion, you accept it, and the client pays a one-time Conversion Fee.
It exists because of one rule. Upwork's help center says that when a client finds a freelancer through Upwork, the Terms of Service require all work and payments to stay on Upwork for the first two years. Contract-to-hire and the Conversion Fee are the sanctioned way around that. Skipping them is circumvention, and Upwork says that can lead to permanent loss of account access.
Every fact below comes from Upwork's own help center articles on contract-to-hire, contract conversion, the Conversion Fee and Any Hire, checked on the day this was written. Upwork updates these pages often, so if what you see in your account differs, trust your account.
How to show you are open to contract-to-hire
- Go to Find work > Preferences.
- Select the edit symbol labeled Job Preference.
- Check the box next to Open to contract-to-hire.
- Choose Update to save your preference.
If you are brand new to Upwork, you can select Open to contract-to-hire during profile set-up instead. Clients searching for talent can filter results by Open to Contract-to-Hire and invite people who said yes, so the checkbox is also a discovery signal, not just a label.
My view: only tick it if you would genuinely consider a full-time offer. If you are building an independent business and a client invites you because of that filter, you have started the relationship with a mismatch in expectations.
How to find contract-to-hire jobs on Upwork
When you search for jobs, select the Contract-to-hire filter option from the menu on the left. Clients set this flag when they post: on the scope of work page Upwork asks whether the job is a contract-to-hire opportunity, and the client selects Yes, this could become full-time.
- No obligation either way. Upwork says there is no obligation to move to full-time, and the client may decide not to.
- No limit. You can hold as many contract-to-hire contracts at once as you can handle.
- The flag is not required for a conversion. Any active or closed contract can be converted, whether it started as contract-to-hire or not.
Treat the filter as one input, not a shortcut. A contract-to-hire job still needs to pass the same checks as any other post, so run it through [how to find good jobs on Upwork](/blog/how-to-find-good-jobs-on-upwork) before you spend Connects on it.
What happens when a client wants to hire you full-time
Clients start the conversion, not freelancers. Upwork encourages clients to talk to you before they send the request, so in practice the conversation usually comes first. The client's steps, per Upwork:
- Go to Manage work > All Contracts and find the contract.
- Select See contract.
- Open the (...) menu inside the contract.
- Select Hire talent full time. Upwork says clients choose this even when the new arrangement is an independent contractor or another classification, not employment.
- Follow the steps and send the conversion request.
You then get an email and a notification naming the client and contract, and you can accept or reject the offer. If you accept, Upwork processes the client's payment, and once the fee is paid you get a confirmation email. From that point you can work with the client directly.
If the client says the Hire talent full time option is missing, Upwork gives two reasons: the contract is more than two years old (the client should contact Upwork for help), or they are viewing the wrong company or team. Only the company that originally engaged you can request the conversion.
How the Upwork Conversion Fee is calculated
Upwork's formula is 13.5% of an estimated annual income: your hourly rate x 2,080 hours (52 weeks x 40 hours). Which hourly rate goes into the formula depends on the contract type.
Conversion Fee inputs and Upwork's own worked examples (checked 2026-10-21)
| Contract type | Rate Upwork uses | Upwork's example |
|---|---|---|
| Hourly | The highest hourly rate between you and that specific client (rates with other clients are ignored) | $30/hr x 2,080 = $62,400; 13.5% = $8,424 |
| Fixed-price | The hourly rate listed on your profile | $50/hr x 2,080 = $104,000; 13.5% = $14,040 |
- Paid once per freelancer and client relationship.
- Paid in full, with a single payment method. No installments.
- Who covers it is up to you and the client. If you agree to split it, you arrange that between yourselves.
- Clients typically initiate the conversion process.
Two things follow from those rules, and this is my reading rather than anything Upwork states. On fixed-price work, the fee is driven by the rate on your profile, not what the client actually paid you, so a profile rate far above your real fixed-price earnings makes the conversion more expensive for the client. And on hourly work, the highest rate you ever billed that client sets the number, so a late rate increase also raises the fee. Neither is a reason to change your pricing, but both are worth knowing before the client opens the calculator. For how your rate is set in the first place, see [how to change your hourly rate on an Upwork contract](/blog/how-to-change-your-hourly-rate-on-an-upwork-contract).
Conversion Fee discounts
Upwork lists two discount types, and says any discount you qualify for is calculated automatically and shown during the conversion process:
- Time-based: if the contract began more than two years ago, only a small fee applies.
- Activity-based: discounts based on the total Marketplace fees the client has paid and how long the client and freelancer have worked together.
Upwork does not publish the size of either discount, so I will not guess at one. The client sees the real figure inside the flow. Enterprise clients are different again: their fee is set in their Enterprise agreement and handled by their Enterprise Support team.
What changes after conversion, and what stays
After a contract is converted, per Upwork's help center
| Changes | Stays the same |
|---|---|
| You can work together outside Upwork without breaking the Terms of Service | The contract stays in both work histories and profiles |
| No Upwork billing for that contract | Funds still count toward client spend and your Upwork earnings |
| Upwork payment protection no longer applies | Conversion has no impact on Job Success Score |
| No customer service or dispute resolution for that relationship | You and the client can still leave feedback for each other |
The left column is the part freelancers underrate. Upwork says that once a contract is converted, any issue with payments, communication or deadlines has to be resolved without its help. On Upwork, [hourly protection and the Work Diary](/blog/upwork-work-diary-and-hourly-protection) are doing quiet work for you. Off Upwork, your contract, your invoicing terms and your payment schedule have to do that job instead.
Converting also does not lock you out of the platform. Upwork says that following the conversion process and paying the fee keeps you in line with the Terms of Service, so you can keep using Upwork for other clients.
Contract-to-hire vs Any Hire vs a direct retainer
Any Hire is Upwork's self-service platform for hiring and onboarding employees. It is meant for clients and freelancers who met outside Upwork. Upwork is explicit: if a client found you on Upwork and asks you to work through Any Hire, decline unless they go through the conversion process and pay the fee. The Conversion Fee still applies even when the client plans to use Any Hire to employ you.
The exceptions are relationships that started outside Upwork and came in through BYO (Bring Your Own), or work done through Upwork Payroll. Those can move to Any Hire without the Conversion Fee.
If what you actually want is a long-term client paying you directly as an independent business, not a job, the rules are the same: conversion or the two-year window. The relationship side of that move is covered in [how to move an Upwork client to a direct retainer](/blog/how-to-move-upwork-clients-to-direct-retainers).
Should you accept a contract-to-hire conversion?
This is judgment, not data. Upwork does not publish how many conversions happen or how they work out, so here is how I would think it through:
- Compare the whole offer, not the rate. A salary, benefits and stability against your current Upwork income from all clients, after the [freelancer service fee](/blog/how-much-does-upwork-take-freelancer-fees-explained). A full-time role usually means giving up the other clients too.
- Get the new terms in writing before you accept. Once you accept and the fee is paid, Upwork's support and protection are gone for this client. Settle pay, schedule, classification and notice period first.
- Know who is paying the fee. Upwork leaves that to the two of you. If the client expects you to contribute, that is a pay cut and should be priced as one.
- Remember the safety net is optional, not mandatory. Saying no to a conversion is allowed. You can keep working with the client on Upwork exactly as before.
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Frequently asked questions
What does contract-to-hire mean on Upwork?
It means a client may want to turn a freelance contract into a full-time role or other direct relationship. Clients can flag jobs as contract-to-hire, freelancers can mark themselves Open to contract-to-hire, and the move itself happens through Upwork's contract conversion process and Conversion Fee.
How do I turn on Open to contract-to-hire?
Go to Find work > Preferences, select the edit symbol labeled Job Preference, check Open to contract-to-hire, and choose Update. New freelancers can select it during profile set-up.
Am I obligated to go full-time if I take a contract-to-hire job?
No. Upwork says there is no obligation to move to full-time, and the client may also decide not to.
How much is the Upwork Conversion Fee?
13.5% of an hourly rate x 2,080 hours. For hourly contracts Upwork uses the highest rate between you and that client; for fixed-price contracts it uses the hourly rate on your profile. Upwork's own example: a $30 rate gives an $8,424 fee.
Who pays the Upwork Conversion Fee, the client or the freelancer?
Clients typically initiate the conversion, but Upwork says it is up to the client and freelancer to decide who covers the cost. It must be paid in full with a single payment method.
Can I start a contract conversion as a freelancer?
No. Clients initiate the conversion from the contract's (...) menu by selecting Hire talent full time. You are notified and must accept the request.
Does converting a contract affect my Job Success Score?
No. Upwork says conversion has no impact on Job Success Score. The contract stays in your work history, its earnings still count, and both sides can still leave feedback.
Can a client hire me through Any Hire instead of paying the Conversion Fee?
Not if they found you on Upwork. Upwork says you should decline unless the client completes the conversion process and pays the fee. Relationships that came in through BYO or Upwork Payroll are the exceptions.
Last reviewed by David Iya on October 21, 2026
