Research on the relationship between transformational leadership and safety compliance has yielded equivocal results. This study investigates how and when transformational leadership produces divergent effects on safety compliance. Using a time-lagged research design, we collect data from a sample of 309 employees in the Chinese construction industry to examine the hypothesized relationship. We find that transformational leadership positively affects safety compliance through employees’ felt obligation toward their leader. However, transformational leadership also negatively impacts safety compliance through safety risk tolerance. We further show that employees’ perception of the safety climate plays a contingent role in the above processes. Specifically, a high-level perceived safety climate strengthens the positive indirect effect of transformational leadership on safety compliance through felt obligation, while a low-level perceived safety climate strengthens the negative indirect effect of transformational leadership on safety compliance through safety risk tolerance. The theoretical and practical implications of the findings are also discussed.
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