How are employee grievances and concerns addressed when working with an EOR?

In an Employer of Record (EOR) arrangement, addressing employee grievances and concerns requires a collaborative approach involving both the EOR and the client company. An EOR handles HR, payroll, and compliance functions on behalf of the client, but because employees are integrated within the client’s day-to-day operations, grievance management often necessitates joint efforts. Here’s how grievances are typically managed within an EOR framework:

Clear Grievance Policies and Communication Channels

The EOR and the client organization need to establish clear, documented grievance policies that outline the grievance types, filing process, investigation procedures, and resolution timelines. Employees should be informed about the specific points of contact for different types of grievances—such as the EOR for payroll or benefits concerns, and the client’s management team for issues related to daily tasks or work environment. Providing accessible, transparent grievance channels fosters trust, ensures compliance, and empowers employees to raise concerns safely.

Types of Employee Grievances and Addressing Protocols

• Individual Grievances (e.g., workload concerns or interpersonal conflicts) are usually best addressed by the client company’s management, as they are closer to the employee’s daily tasks and team dynamics.
• Policy and Compliance Grievances (e.g., payroll, leave entitlements, or safety policies) often fall under the EOR's responsibility. The EOR is usually responsible for ensuring that workplace policies align with local labor laws and are fairly enforced across employees.
• Group or Collective Grievances, such as issues with overtime policies or department workload, may require joint action. Here, both the EOR and the client might engage in consultations to find resolutions that balance legal compliance with operational needs.

Grievance Resolution Process

Most grievances follow a structured process involving:

• Initial Submission: Employees can submit grievances through designated forms or systems provided by the EOR or client, depending on the nature of the concern. Clear acknowledgment of the grievance is vital to assure the employee their concerns are taken seriously.
• Investigation: For specific grievances, the EOR might conduct investigations, especially if they involve compliance or legal issues. The client company, however, might handle grievances related to work environment or team dynamics, while seeking EOR’s guidance on best practices.
• Resolution: Based on the investigation, a fair and balanced resolution is formulated. In cases requiring mediation, the EOR may step in to support conflict resolution through neutral, HR-led discussions.
• Documentation and Follow-up: To ensure transparency, each step is documented thoroughly. Additionally, a follow-up meeting with the employee may be scheduled to gauge satisfaction with the resolution and reinforce a positive, supportive workplace.

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Best Practices for EOR and Client Collaboration

• Regular Communication: Periodic check-ins between the EOR and the client company ensure smooth management of grievances and proactive identification of potential issues.
• Data Analysis: Monitoring trends in grievances (e.g., frequent concerns about a particular policy) can prompt proactive policy changes or employee training. Digital platforms that track grievance cases help both the EOR and client assess the effectiveness of grievance redressal processes.
• Training Programs: Providing training on grievance handling for client managers and EOR representatives helps build an understanding of the employee’s rights and ensures grievances are handled fairly and empathetically.

How Wisemonk Can Help?

Wisemonk streamlines the grievance management process within EOR arrangements by providing structured policies, responsive support channels, and compliance-driven frameworks. With Wisemonk, employees have access to clear grievance submission processes, and both clients and employees benefit from data-driven insights to proactively address concerns. Wisemonk also offers expert guidance to client managers on best practices for handling employee grievances sensitively and legally, making it easier for clients to create a respectful, compliant work environment.