EXAMINING APPLICATION OF PSYCHOLOGICAL CONTRACT IN ADMINSTERING JUSTICE IN LABOUR COURTS IN KENYA

Abstract

Purpose: The main objective of this study was to establish whether psychological contract can be applied by the courts in case of unfair termination of employment. Methodology: The study used exploratory research design to establish whether psychological contract can be applied by the courts in case of unfair termination of employment. The study analyzed psychological contract theory from a legal perspective and how human resource practitioners, advocates and judges can incorporate it in court cases. The study used exploratory research since it intends merely to explore the research questions and does not intend to offer final and conclusive solutions to existing problems. This is because the concept has not been clearly defined yet. However, the study helps us to have a better understanding of the problem. The study relied on decided court cases, journal articles and publications and books.  Results: The study found that psychological contract breaches occur when an employee perceives that an organization has failed to meet its obligation to the employee. When the breach occurs it affects the employee contribution in three forms; performance, civic virtue and intention to remain in the organization. The legal employment contract does not embrace the principles of contract law such as consideration.   Unique contribution to theory, practice and policy: The legal employment contract does not embrace the principles of contract law such as consideration. The employee does not dictate the terms of the contract. Therefore, there is need to consider psychological contract theory as an input to understanding contemporary labour practices. This is because psychological contract brings in a unique way of interpreting an employment contract, understanding employment relationship and the need for policy reforms.