This paper examines the nature of employment and the conditions of work in five telephone call centres in the telecommunications industry in Australia. Call centre work typically requires high levels of sustained interpersonal interaction with customers which can lead to burnout and employee withdrawal. Customer service staff can also become targets of customer hostility and abuse. In addition, this form of work tends to involve extensive employee monitoring and surveillance with little job discretion or variety of tasks. The paper draws upon survey data from 480 telephone service operators to identify the factors that are associated with emotional exhaustion and the frequency of absence amongst the employees. A modelling of the data using LISREL VIII revealed that a number of job and worksetting variables affected the level of emotional exhaustion of employees. These included interactions with the customer, a high workload and a lack of variety of work tasks. Moreover, higher rates of absence were associated with emotional exhaustion.

Experiences of psychological contract breach have been associated with a range of negative behavior. However, much of the research has focused on master of business administration alumni and managers and made use of self-reported outcomes. Studying a sample of customer service employees, the research found that psychological contract breach was related to lower organizational trust, which, in turn was associated with perceptions of less cooperative employment relations and higher levels of absenteeism. Furthermore, perceptions of external market pressures moderated the effect of psychological contract breach on absenteeism. The study indicated that psychological contract breach can arise when employees perceive discrepancies between an organization's espoused behavioral standards and its actual behavioral standards, and this can affect discretionary absence.