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Version: 1.0.0
Last Updated: 2026-03-20
Spec: HR-15 Compensation Management
Constitution Reference: Section 1.2 (Core Independence), Section 1.3 (Integration Patterns)

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Overview

HR-15 manages compensation structures, salary bands, merit increases, and total compensation statements. It publishes events for compensation cost allocation and merit increases, and integrates with HR-07 (Payroll) and FA (Finance).

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Integration Points

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Platform Foundation (PF) Dependencies

Required PF Features:
  • PF-11 (Documents): Total compensation statement PDFs
  • PF-10 (Notifications): Merit increase notifications

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Consumer Core Dependencies (Downstream)

Internal HR Features:
  • HR-01 (Employee Directory): Employee context, current salary
  • HR-07 (Payroll): Salary updates, compensation data
  • HR-10 (Performance): Performance ratings for merit increases
External Cores:
  • FA (Finance): Compensation cost allocation to GL accounts

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Event Contracts

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Event: hr_merit_increase_approved

Publisher: HR (HR-15)
Subscribers: HR-07 (Payroll), FA (Finance)
Status: 📝 Planned Purpose: Notify payroll and finance of approved merit increases Publish Trigger: When hr_merit_increases.status = 'approved' is set Payload Schema: 
interface HrMeritIncreaseApprovedPayload {
  event_type: 'hr_merit_increase_approved';
  employee_id: uuid;
  current_salary: numeric;
  increase_percentage: numeric;
  increase_amount: numeric;
  new_salary: numeric;
  effective_date: date;
  organization_id: uuid;
  timestamp: timestamptz;
}
Reference: See docs/architecture/integrations/EVENT_CONTRACTS.md for complete event contract documentation.

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Event: hr_compensation_cost_allocated

Publisher: HR (HR-15)
Subscribers: FA (Finance)
Status: 📝 Planned Purpose: Map compensation data to GL accounts based on department/cost center Publish Trigger: When compensation changes (real-time) or nightly batch (for bulk updates) Payload Schema: 
interface HrCompensationCostAllocatedPayload {
  event_type: 'hr_compensation_cost_allocated';
  organization_id: uuid;
  employee_id: uuid;
  total_compensation: numeric;
  base_salary: numeric;
  benefits_cost: numeric;
  effective_date: date;
  department_id: uuid;
  cost_center: string;
  timestamp: timestamptz;
}
Refresh Cadence: Real-time (published when compensation changes) or nightly batch (for bulk updates) FA Responsibilities:
  • Subscribe to hr_compensation_cost_allocated events
  • Map compensation data to GL accounts based on department/cost center
  • Update financial records with labor cost allocations

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Event: hr_compensation_analysis_completed

Publisher: HR (HR-15)
Subscribers: FA (Finance)
Status: 📝 Planned Purpose: Notify finance of completed compensation analyses Publish Trigger: When hr_compensation_analyses.status = 'approved' is set Payload Schema: 
interface HrCompensationAnalysisCompletedPayload {
  event_type: 'hr_compensation_analysis_completed';
  analysis_id: uuid;
  analysis_type: 'internal_equity' | 'market_comparison' | 'distribution';
  equity_score: number; // 0-100
  market_percentile: number; // 0-100
  organization_id: uuid;
  timestamp: timestamptz;
}
Reference: See docs/architecture/integrations/EVENT_CONTRACTS.md for complete event contract documentation.

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Events Consumed

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hr_performance_review_completed

Publisher: HR-10 (Performance Management)
Subscriber: HR-15 (Compensation Management)
Status: 📝 Planned Purpose: Trigger merit increase planning workflow when performance review is completed Payload Schema: See docs/architecture/integrations/EVENT_CONTRACTS.md for full schema. Implementation Note: The hr_performance_review_completed event trigger must be created in HR-10 before HR-15 can consume it.

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Alternative Read-Only Access (if events not used)

  • FA can have read-only access to hr_salary_bands and hr_total_compensation_statements tables
  • Access controlled via RLS policies using hr_has_org_access function
  • Refresh cadence: Real-time queries or nightly batch sync

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Platform Integration Layer Usage

Consumes:
  • PF-11 (Documents): Total compensation statement PDFs via @/platform/documents
  • PF-10 (Notifications): Merit increase notifications via @/platform/notifications

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Security Considerations

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Multi-Tenancy

  • ✅ RLS Enforcement: All hr_compensation_* and hr_salary_* tables filtered by organization_id via RLS policies

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Role-Based Access Control

  • ✅ HR Admin: Full access to all compensation data
  • ✅ Manager: View compensation for direct reports (if permitted)
  • ✅ Staff: View own compensation statements only

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Data Protection

  • ✅ PII Handling: Compensation data is highly sensitive; access controlled via RLS
  • ✅ Audit Trail: All compensation changes logged via PF-04

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Testing Requirements

  • Event payload structure validation
  • Event fires on trigger condition (merit increase approval, compensation change, analysis completion)
  • Correct organization_id included in all events
  • Subscribers handle events correctly (HR-07, FA)
  • RLS policies enforce org isolation on compensation queries
  • Alternative read-only access works correctly if events not used

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References