Abstract In light of trends toward globalization, restructuring, and downsizing, psychological contracts are playing an increasingly important role in contemporary employment relationships. Organizations, under pressure to make rapid and constant changes, have had to alter employment relationships and the psychological contracts that underlie them. Psychological contracts refer to employees’ perceptions of what they owe to their employers and what their employers owe to them. In this climate of change, the traditional contract of long-term job security in return for hard work and loyalty may no longer be valid (Sims, 1994), and employees and employers alike are now reconsidering their mutual obligations. More importantly, these changes have increased the likelihood of psychological contract breach.