This paper investigates the links between the psychological contract and organizational justice variables on to performance behaviors through the mechanisms of engagement, job satisfaction and psychological distress, beyond the perception-oriented individual factor of negative affectivity. Nursing staff (n = 273) from a medium to large Australian hospital completed a self-report survey. Structural equation modeling found differential effects of psychological contract breach and psychological contract status, the mediating roles of engagement, job satisfaction and distress on to performance behaviors, while noting the role of individual negative affectivity. Engaging nurses is critical to both their in-role and discretionary performance behaviors. Reducing negative impacts, particularly those due to breaking promises and unfair processes, while protecting the nurses’ mental health, enables performance levels to be maintained. This study demonstrates that nurses’ general perceptions of their employment relationship impacted their in-role and discretionary performance behaviors, especially through the mechanism of engagement. The complexity of managing nurses is highlighted by those variables that enacted positive impacts via engagement as versus the variables that led to distress and acted as brakes on performance, as well as the impact of the negative affectivity trait of the nurses.