The objective of this study is to examine empirically the mediated effect of psychological contract breach on the relation between employment instability and turnover intention for hotel employees. To achieve this aim, an empirical research based on literature review was conducted deploying a survey method. The subjects were the employees of hotels located in Daejeon city, and the answered survey results were coded. Based on the collected data using SPSS 23.0(for Windows) and AMOS released 23.0, conducted are a frequency analysis; exploratory factor analysis on employment instability, psychological contract breach, and turnover intention; and reliability analysis. In addition, regression analysis was exploited to see the effects among variables, and structural equational model to verify the hypothesis to examine the causal effect on this study. Also, statistical significance test on indirect effect was conducted using Sobel’s Z test to verify the mediated effect of psychological contract breach. The test results support the followings: First, the mechanism between employment instability and turnover intention did not show a significant result, while a positive relationship was expected previously. From the model on this study, it could not be concluded that employment instability affects turnover intention. Second, the test results supported that employment instability has a positive relation with psychological contract breach. Third, the psychological contract breach was also verified to have statistically positive relation with turnover intention. Fourth, the psychological contract breach showed a full medicated effect in the mechanism between employment instability and turnover intention. These results suggested the need of the programs between manager groups and workers, a training program to minimize the psychological contract breach, improvements on net payment and welfare, and fare, transparent human resource management.