On its own, the legal contract of employment offers a limited understanding of the employment relationship, with workers contributing little to its terms after accepting them. In this sense, the psychological contract may be more influential. It describes the perceptions of the relationship between employers and workers and influences how people behave from day to day. At its core, the psychological contract is built on the everyday actions and statements made by one party and how they are perceived and interpreted by the other. Unlike the legal contract of employment signed by employers and workers, it’s not tangible.
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