As an employee, you go to work every day with certain expectations and beliefs about your employer. These expectations are often based on the psychological contract that you have with your employer. The psychological contract is an unwritten agreement between you and your employer that defines your mutual expectations, obligations, and responsibilities. It is the underlying bond that governs your working relationship.

When this psychological contract is broken, it can have a profound effect on your work experience and your relationship with your employer. Here are some of the things that can happen when a psychological contract is broken:

1. Loss of trust: When an employer fails to deliver on their promises, it can lead to a loss of trust. This can be a significant blow to the employee-employer relationship. Employees may feel that their employer is not honest or trustworthy, leading to a strained working relationship.

2. Reduced motivation: The psychological contract helps to motivate employees, providing a sense of purpose and meaning to their work. When this contract is broken, employees may lose motivation and become less productive. Employees may feel that their hard work is not appreciated or that their employer is not fulfilling their end of the bargain. This can lead to reduced motivation and engagement.

3. Increased turnover: Employees who feel that their employer has broken the psychological contract may choose to leave the company. This can lead to increased turnover and the loss of valuable employees. Employers may find it challenging to retain top talent if they are not meeting employee expectations.

4. Negative workplace culture: A broken psychological contract can lead to a negative workplace culture. Employees may become disillusioned, leading to a toxic work environment. This can be detrimental to both employees and the company as a whole.

5. Litigation: In some cases, a broken psychological contract may lead to legal action. Employees may feel that their rights have been violated, leading to lawsuits and legal disputes. This can be costly for the company and damaging to their reputation.

In conclusion, a psychological contract is an essential component of the employee-employer relationship. When it is broken, it can have a range of negative consequences, from reduced motivation and productivity to increased turnover and legal disputes. Employers must work to maintain a strong psychological contract with their employees to build a positive workplace culture and retain top talent.