The main causes of a breach of contract

20 Nov 2022 | Methodology

– one of the parties has pulled too hard on the rope
– the rope has broken due to natural wear
– an external factor has weakened the rope

Every organization is a meta individual with its own Maslow’s pyramid that seeks to satisfy desires (goals): to be financially healthy, to achieve strategic objectives, to fulfill a mission. Organizations are alive and their objectives change during their life cycle.

Each member of the organization has his own Maslow’s pyramid and when he chooses to join an organization, he signs a contract which can be a commercial contract (freelance), an employment contract (employee), a moral contract (influencer), …

Whatever its legal form, the contract that binds the employee to the organization is first and foremost a social contract that must give the employee the means to satisfy his or her desires more …

– simply
– quickly
– effectively
– serenely

… than by other own means.

When the contract is broken by the employee, it is natural to ask questions:

– have the collaborator’s desires changed?
– Is the employment contract always the simplest, most efficient, quickest and least risky way to achieve one’s objectives?

Employees’ desires changed profoundly before and during the COVID crisis:

– balance between professional and personal life
– rejection of large agglomerations
– search for meaning in work
– daily interest of the activities
– enjoy working with colleagues
– recognition of commitment
– taking into account the singularity
– quality of life at work
– opportunity to develop
– …

Companies have also evolved their desires to meet the new constraints of an increasingly volatile, uncertain, complex and ambiguous environment:

– accelerated rhythms
– resource optimization
– performance requirements
– process industrialization
– better control of risks
– complexification of organizations
– …

The forces at play seem so strong and so opposed that one may question the very future of the employment contract. In many sectors of the economy, the permanent contract is no longer the dominant model: journalism, entertainment, IT, sports, cabs, etc.

The “liquefaction” of the world of work, made possible by platforms and remote work, challenges the traditional business model.

Is a company without employees still a company?
Is it possible to fight against this (r)evolution?
Is this desirable?

Only one thing is certain: a new social contract must be rebuilt, and this can only be done by working together with all stakeholders.