PERTANIKA JOURNAL OF TROPICAL AGRICULTURAL SCIENCE

This research analysed direct and indirect effects of psychological contract towards turnover intention through its effect on work engagement in PT. Indah Jaya Londrindo. Data was obtained from PT. Indah Jaya Londrindo's 183 regular employees. Validity and reliability test, classical assumption tests, goodness of fit test, and SEM were used to analyse the relation between variables. Findings indicated psychological contract had a significant effect on work engagement and turnover intention individually; and that work engagement significantly mediated the relation between psychological contract and turnover intention. Thus, this study contributes to the knowledge of Human Resource Management by pointing to the importance of psychological contract and work engagement to turnover intention. This research also offers solution to PT. Indah Jaya Londrindo's 'increasing employee turnover intention'.