Payments & Invoicing

Initiating a Dispute

• When to Initiate:  
  If you encounter issues such as non-delivery of work, payment discrepancies, or communication breakdowns, you can initiate a dispute through your project dashboard.
• Steps to Start the Process:  
  1. Navigate to the "Payments & Invoicing" section.
  2. Click on "Open Dispute" for the specific project.
  3. Provide a detailed explanation of the issue, along with any supporting documentation.

Dispute Resolution Flow

• Discussion Period:  
  Once a dispute is initiated, both parties enter a 3-day discussion period to attempt to resolve the issue. During this period:
  • Freelancers and clients can exchange messages to clarify misunderstandings.
  • If an agreement is reached, the dispute can be closed without penalties.
• Automatic Resolution:  
  • If no agreement is reached within the discussion period, the dispute escalates, and Loxala’s support team steps in to review the case.
  • If the client does not respond within 7 days, the platform may automatically resolve the dispute in favor of the freelancer.
  • The resolution process may take longer depending on the complexity of the case and the cooperation level of both parties. The faster both sides collaborate and provide the necessary information, the quicker Loxala's Dispute Support team can reach a fair decision.

Impact on Freelancer Ranking and Penalties

• Effects of Unresolved Disputes:  
  Disputes can impact a freelancer’s Job Success Score (JSS) and overall ranking:
  • Minor Impact: For disputes due to valid reasons like personal emergencies or documented client miscommunications.
  • Moderate Impact: For disputes related to scope changes or payment delays, especially if these issues could have been addressed earlier.
  • Significant Impact: For repeated disputes due to poor workload management or unjustified cancellations.
• Automatic Platform Penalties:
  • First Warning: Issued after two disputes are raised within a short timeframe.
  • Second Warning: A third dispute leads to a 5-day account suspension.
  • Final Warning: A fourth dispute results in a permanent ban from the platform.

Resolution and Appeals

• Notification of Decision:  
  After Loxala’s review, both parties will be notified of the decision, including any penalties applied.
• Appeals Process:  
  Freelancers may appeal decisions if they believe a dispute was unjustly resolved. Appeals must be submitted with evidence within 7 days of the decision.
• Appeal Review:  
  The Loxala support team will review the appeal and make a final decision. This process may also vary in length depending on the complexity of the dispute and how promptly both parties provide necessary evidence.