Psychological contract breach and employee health: The relevance of unmet obligations for mental and physical health

Abstract

This study examines the effects of psychological contract breach (PCB) on employee mental and physical health (SF-12) using a sample of 3,870 employees derived from a German longitudinal linked employer-employee study across various industries. Results of multivariate regression models and mediation analysis suggest that PCB affects both the mental and the physical health of employees but is more threatening to employee mental health. In addition, mental health partly mediates the effects of PCB on physical health. Also, the findings of this study show that the relative importance of obligations not met by employers differs according to the specific contents of the psychological contract. In conclusion, the results of this study support the idea that PCB works as a psychosocial stressor at work that represents a crucial risk to employee health.