The relationship between the 'psychological contract' and 'employment relations'

Great importance is being attached to the concept of the psychological contract. However, the concept does not sit easily within the 'traditional' perspective on employment relations with its primarily institutional-level focus. Nevertheless, the concept, depending on how it is defined, has great potential to fill an emerging gap in employment relations: that of individual-level analysis. This gap becomes apparent when a broader, more 'contemporary' perspective on employment relations is considered. This 'contemporary' perspective moves beyond an institutional-level focus to consider all the behaviours, outcomes, practices, and institutions that relate to the employment relationship. In order to integrate the concept of the psychological contract into 'contemporary' employment relations thinking, additional research is required in the following areas: (i) the relationship between employment institutions and individual employees; (2) how employment institutions influence the psychological contract between individuals and their employer; and, (3) the relationship between the legal context and the psychological contract.