Psychological contract has become an important concept of employee management because of its implication in employee's attitude and behaviour. Good amount of research has been done on the implication of breach/violation and fulfillment of psychological contract but little effort has been made to understand the nature of psychological contract especially among contract employees vis-a-vis their regular counterpart. The present research is an attempt to fulfill this objective. The research is designed to explore the formation and content of psychological contracts by the academicians in the Royal University of Bhutan. Using exploratory factor analysis of the survey data, six factors were discovered relating to the University's obligations to its employees; whereas five factors were found in relation to individual academic's obligations to the University.
