The psychological contract
This factsheet examines what the psychological contract is, why it's important and the strategic implications it has on the employment relationship
Understand what employee relations means as a concept and what it means to employers
Employee relations focuses on both individual and collective relationships in the workplace. A positive climate of employee relations - with high levels of employee involvement, commitment and engagement - can improve business outcomes and contribute to employees' wellbeing.
This factsheet considers current factors affecting the employment relationship and the continuing value of positive employee relations for trade unions, employers, people professionals and managers.
This factsheet was last updated by Lisa Ayling and Rachel Suff.
Lisa Ayling: solicitor and employment law specialist
Lisa is a lawyer with many years’ experience of contentious and nonācontentious employment law. As well as writing and editing employment law content for the CIPD, Lisa lectures extensively on employment law, including years as a senior lecturer and leader of the employment team at BPP University and on the LLM programme at Kingston University.
Rachel Suff: Senior Employee Relations Adviser, CIPD
Rachel informs CIPD policy thinking on health and wellbeing as well as employment relations. She has over 25 years’ experience in the employment and HR arena.
This factsheet examines what the psychological contract is, why it's important and the strategic implications it has on the employment relationship
Compare your health and wellbeing practices with the latest trends, drawn from CIPD 2026 research data.
Benchmark your employees' perceptions of work life balance against 2026 CIPD research data
The latest data on job satisfaction, employee perceptions of their organisations, and employee contributions to their organisation's productivity
This factsheet examines what the psychological contract is, why it's important and the strategic implications it has on the employment relationship
Learn how to identify the signs of stress and address stress at work
Understand how being defined in UK law as an employee, a worker or self-employed affects employment rights and employers’ different legal responsibilities towards them
Outlines the main characteristics of strategic and total reward, and looks at designing and implementing a reward strategy across the organisation