Restructuring the employment relationship in Surrey County Council

This article looks at attempts made by a case study organization, Surrey County Council, to evaluate and restructure the employment relationship in the context of a range of financial, managerial and political pressures for change. The notion of the psychological contract is used to conduct this evaluation and restructuring. A survey eliciting the views of some 6,000 Surrey employees highlights major gaps in terms of what employees expect and receive from their employer as well as discrepencies in what employees feel they owe the employer and actually give. Consideration is given to how the authority has sought to address these concerns through a new deal with employees. The article provides insights into the contingent circumstances leading to changes in the employment relationship, information on the state of the psychological contract in local government and an illustrative case of how one local authority went about addressing employee concerns in the light of major constraints.