This study aims to measure the effect of temporary employment contracts on hotel staff performance. Therefore, a field study was conducted by distributing a questionnaire to a sample of employees in Greater Cairo's five-star hotel. The study used the Convenience sampling technique to distribute three hundred eighty-five questionnaires which 108 were disqualified, and 277 usable ones were statistically handled (71.9% response rate). The results were statistically analyzed with the SPSS (v. 20) and SmartPLS. The study results show that most employees' behavioral and psychological dimensions (i.e., job insecurity, job satisfaction, organizational commitment, trust, ethical leader behavior) are significantly affected by a temporary employment contract, simulating their performance. Furthermore, three factors of staff retention (organizational climate, job satisfaction, and employee well-being) are essential for employees to stay loyal to their work. The study holds implications for future scholarly research in the hotel industry. The study recommends that hotel managers motivate the staff by different methods to enhance their performance and increase their loyalty and satisfaction.