Psychological contract breach during the pandemic: How an abrupt transition to a work from home schedule impacted the employment relationship

Abstract

Organizations shifted employees to a work from home schedule as a protective health measure during the COVID-19 pandemic. This paper depicts the path through which the abrupt workplace disruptions can trigger employees’ perceptions of felt mistrust, intensify work to life conflict, and cause a psychological contract breach. In study 1, we conducted an experiment with 133 college students and found that switching to a work from home schedule with enhanced supervisor control increased the psychological contract breach through felt mistrust. In Study 2, we surveyed 239 adults who worked from home during the pandemic. Results underline the role of work to life conflict as a mediator through which disruptions and felt mistrust influenced the breach of psychological contract. Further, coping strategies were found to mitigate this detrimental effect. Overall, our findings suggest that sudden shifts in management practices can challenge workplace relationships during environmental shocks.