PurposeHealthcare is a vital sector in any economy, and the healthcare industry employees should be treated well. Work policies and practices shape the psychological contract (PC) of an individual. The purpose of this paper is to explore healthcare employees' PC fulfillment from the lenses of work practices and how it affects their ambidextrous behavior (explorative and exploitative activities).Design/methodology/approachThis study follows a mix-method research design. First, the authors conducted telephonic interviews to enlist the PC fulfillment items, and after checking the reliability and validity, the authors conducted the survey using a descriptive research design. The sampling method was snowball sampling, where 786 respondents from 6 hospitals were surveyed, and AMOS (analysis of a moment structures) 20 was used for the structural equation modeling (SEM).FindingsFor the healthcare sector employees, a sense of belongingness has contributed the highest in exploration activities followed by work–life balance, rewards and managerial support. Work–life balance has contributed highest in exploitation activities, followed by a sense of belongingness, teamwork and managerial support.Research limitations/implicationsThe study offers important implications for researchers and employers of the healthcare sector and highlights the significance of the PC fulfillment, leading to the employees' ambidextrous behavior. There was no prior work that had empirically proved the relationship between PC fulfillment and ambidextrous behavior.Originality/valueIn the study, an attempt was made to identify the healthcare industry's work practices and how that is associated with explorative and exploitive ambidextrous behavior. The paper instigates the imperative deliberation on PC fulfillment and ambidextrous behavior for healthcare sector employees.