An employment rule that determines the content or ‘substance’ of the employment relationship. An example would be a rule stating that an employee in a particular job grade whose performance has been rated as ‘exceptional’ will receive a consolidated salary increase of 10 per cent. Substantive rules of this kind cover all aspects of the employment relationship, including the design and organization of work and the recruitment, development, reward, appraisal, and exit of employees. Rules may be informal and take the form of implicit understandings about what is appropriate behaviour at work; for example, it may be accepted that people leave work slightly early on Friday evenings because it is the start of the weekend. Alternatively, substantive rules may be written down in contracts of employment, collective agreements, or statutes. The National Minimum Wage is an example of a formal, substantive rule as it states that all employees aged over 21 will receive a minimum payment at a specified level. Substantive employment rules can be contrasted with procedural rules that govern the behaviour and interaction of workers, employers, and their representatives.
Subjects: Human Resource Management.