This study explores employees subjective experience of their employment relation before and during an outsourcing process and has its starting point in the concept of the psychological contract. Eight employees, in the process of being outsourced, were interviewed. The focus was on ‘the employees’ individual experiences and stories about the subjective and perceived employment relationship. Data were analyzed using basic qualitative analysis. The results indicate that a perceived breach of the psychological contract had a profound negative impact on the employment relationship and caused profound negative attitudes and emotional reactions towards the employer. The importance of a well established and mutually formulated psychological contract for the parties involved in the employment relationship, and in an extended perspective for the organization as such, is discussed.