In recent years educational organizations have begun to be administered by more sharing, participation and democratic principles. The school-based management approach accelerated during the decentralization period in education is also seen as a cause for spread of leadership throughout the school. This trend is reflected in the educational leadership literature, which began to describe as distributed leadership (DL), the process/approach of spreading leadership organization-wide. However, the extent to which leadership in educational organizations is distributed cannot be easily delineated, particularly in countries such as Turkey where the system was established and managed centrally. Yet, DL attracts researchers' attention in terms of the organizational behaviours. It ascribes to teachers, such as their commitment and associated psychological contracts (PCs). In this study of Turkish schools that are centrally organized, we consider the relationship between DL and teachers' perceptions of their PC levels. As the research variables are multilevel, the data collected from 466 teachers working in 34 different schools were analysed by hierarchical linear modelling. The analyses indicated that the distribution of leadership among school managers was a significant predictor of the PCs of the teachers. However, the observed variance in the PC was determined to be explained by the service periods of teachers.