Flexible employment contracts, the psychological contract and employee outcomes: an analysis and review of the evidence

Abstract

There has been growing interest in the impact of flexible employment contracts on workers affected by them. In the light of assumptions that such workers are significantly disadvantaged, European-wide legislation has been introduced to ensure that they are treated similarly to permanent employees. The evidence on the impact of flexible employment contracts on employees’ attitudes and behaviour is reviewed within the framework of the psychological contract. The body of research is limited but is sufficient to challenge the assumption that workers on flexible contracts are invariably disadvantaged. Those on contract of choice, particularly knowledge workers who may be pursuing boundaryless careers, are especially likely to report positive outcomes. The evidence also indicates that a framework that incorporates the psychological contract provides additional value in explaining variations in outcomes.