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The purpose of this study is to identify the differential effects of transformational leadership and organizational justice on psychological contract breach and work engagement, and to suggest practical implications. To this purpose, this study theoretically references equity theory which recognizes the relationship between organizational input and output, social exchange theory which explains the exchange relationship between members and organization, and job demand-resource (JD-R) model that combines job demands and job resources. A empirical study was conducted on 277 employees at 18 companies of diverse industries including manufacturing, distribution, and finance, and to eliminate the common method bias problem, the dependent variable was measured using peer evaluation. The results of this study showed that: 1) both transformational leadership and organizational justice had a significant positive effect on work engagement and significant negative effect on psychological contract breach; and 2) psychological contract breach played a partial mediating role in the relationship between transformational leadership and work engagement as well as between organizational justice and work engagement. Therefore, this study suggests that, as organizational justice has stronger influence on work engagement and psychological contract breach than transformational leadership, organizations should not only train its leaders but also guarantee fairness.

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