Agency Theory Framework explains the relationship between two parties in an organisation where one party, known as the principal, delegates work and decision-making authority to another party, known as the agent. In Human Resource Management, the theory is used to understand employment relationships, managerial control, motivation, performance evaluation, and conflicts arising between employees and employers. The concept of Agency Theory was developed mainly by economists Michael C. Jensen and William H. Meckling, who explained that organisations operate through contracts between owners and managers. The principal provides resources and expects the agent to act in the principal’s best interests. However, because both parties may have different goals, conflicts can arise. This situation is known as the agency problem. In the Human Resources context, employers or organisational owners act as principals, while managers and employees act as agents. Employees are expected to contribute their skills, knowledge, and efforts towards organisational objectives. However, employees may sometimes prioritise personal goals such as higher rewards, job security, or reduced workload rather than organisational performance. HR practices are therefore designed to align employee interests with organisational goals. The framework of Agency Theory is based on several important elements. The first element is the principal-agent relationship, where authority and responsibilities are transferred through employment contracts. The second element is information asymmetry, which occurs when agents possess more information about their actions