The psychology of the employment relationship: An analysis based on the psychological contract

Developments are outlined that are leading to changes in employment relations and to the need for a conceptual framework that has contemporary relevance. It is proposed that the psychological contract provides a useful framework, and different studies that have adopted the psychological contract to study aspects of employment relations are outlined. Building on these, it is argued that the psychological contract needs extending to give greater weight to context and to what is described as the state of the psychological contract, incorporating issues of fairness and trust that lie at the heart of employment relations. Based on this model, an agenda for future research is presented.