ABSTRACT

The aim of the study was to investigate the associations between selected employment characteristics, such as type of employment contract, contract volition and type of work performed, and employee health and performance. The mediating role of the psychological contract was also examined in these associations.

A multiple mediation model with two mediators (psychological contract and psychological contract breach) was used in the relationship between three predictors: (1) type of employment contract (fixed-term vs. permanent), (2) employment contract volition (voluntary vs. involuntary), and (3) type of work (manual vs. non-manual), and four dependent variables: (1) work ability, (2) mental health complaints, (3) performance, and (4) work engagement.

The results showed no direct relationship between the type of employment and employee health and performance; however permanent employees turned out to be healthier and more efficient when their psychological contracts were of better quality than those of temporary workers. In addition, people who accepted the type of their contract, as well as people performing non-manual work, were healthier and more productive than those who did not accept their contracts and worked in low-skilled occupations.

In order to maintain employees’ health and organizations’ productivity, the psychological contract between employees and employers should be of good quality and employers should refrain from contract breach.