Furlough and its effects on employees after returning to work: the roles of psychological contract breach and violation, and perceived organizational support

Abstract

Abstract The COVID-19 pandemic brought about changes in the working world. One of the main strategies to cope with the economic situation during lockdowns was to furlough employees. In the current study, we propose that psychological contract breach and violation between the organization and the furloughed employee act as underlying mechanisms that explain the relationship between the employees' furlough status and the increase in their emotional exhaustion and decrease in affective commitment. Furthermore, we suggest that perceived organizational support can act as a buffer that attenuates the association between furloughed employment status and perceived contract breach. The study was conducted at two points in time: during the first lockdown and 4 months afterward (N = 336). Results supported the predicted indirect sequential associations. However, perceived organizational support served to buffer the relationship between furloughed employment status and perceived psychological contract breach only in the case of employees who continued to work.