This article takes as its starting point the substantial changes to the employment relationship (ER) that has been evident within industrial relations and HRM literatures in recent decades. These changes reflect differing views of labour as a source of competitive advantage and labour as a cost to be minimised. These two views of labour held simultaneously within the ER are referred to as the labour cost-value contradiction. This article argues that the labour cost-value contradiction is becoming more salient and is being driven in part by innovations in information and communication technology (ICT). A conceptual model ofthe contemporary ER is developed that reflects these impacts of ICT. A number ofimplications of this model for research of HRM strategy are discussed and a number of specific research propositions presented.