Psychological contract is defined as an unwritten, implicit agreement based on mutual expectations and commitments between the employee and the employer. A breach of the psychological contract arises from the perception that one of the parties has failed to fulfill their obligations, often due to poor management, lack of communication, or unrealistic expectations. Such a breach triggers negative emotional responses in employees, such as anger, frustration, distrust, and burnout, thereby adversely affecting job satisfaction, organizational commitment, and performance. In addition, it can lead to destructive behaviors such as absenteeism, turnover intentions, cynicism, and even sabotage.

This study systematically addresses the antecedents (e.g., poor communication, unfair management, organizational changes) and consequences of contract breach, evaluating the real-world reflections of the concept through contemporary examples. It emphasizes the importance of transparent communication, ethical leadership, organizational justice, and regular feedback mechanisms in preventing psychological contract breaches.

This chapter argues that psychological contract breach offers a critical lens for understanding and managing the hidden dimensions of organizational behavior. It suggests that employers who build trust-based relationships can reduce the risk of breaches, thereby enhancing both employee satisfaction and organizational sustainability. This work aims to contribute to the organizational behavior literature by thoroughly examining the multidimensional nature of psychological contract breach and its impact in the context of modern work life.