Psychological Contract Breach and Violation: The Case of Temporary Workers in Vietnam

Abstract

This chapter looks at workers’ perceptions of psychological contract (PC) breach by their employers, and also assesses whether this perception will cause them to experience feelings of contract violation. Although the concept of PC is paramount in explaining the employer-employee exchange relationship, it is a virtually unknown issue amongst HR managers in Vietnam. Moreover, in the last years, the educated workforce in Vietnam, with at least a college degree, has entered the labor market with short-term employment contracts and precarious employment conditions. The aim of this study is to assess the extent of the perception of PC breach and violation amongst these type of workers. An online questionnaire was administered to a sample of 106 workers holding a higher education degree and having short-term employment contracts in Ho Chi Minh City in 2012. The findings showed that these workers experienced a breach in their PC, revealing that their employers failed to fulfill the promises made to them and consequently experienced negative feelings that resulted in in PC violation. This study is the first attempt to explore the concept of PC breach and violation in a cultural and organizational context relatively unknown such as the Vietnamese one.