# A draft payroll contract, reviewed and explicitly activated

Continuing from [Interview feedback, an approved offer, and a new hire](https://docs.blueonehr.com/books/enterprise/page/interview-feedback-an-approved-offer-and-a-new-hire):
converting an accepted offer into an employee record also creates a **draft** payroll contract.
Nothing is payable yet. This page covers the one screen that reviews that contract against the
offer it came from, and the one explicit action that turns it into something payroll can use.

*Illustrative demonstration prepared using publicly available company context and synthetic
data. This page does not represent a production deployment, customer endorsement, or use of
real employee data.*

<div class="bon-video">
<iframe src="https://www.youtube-nocookie.com/embed/RVb_s5T0wyU" title="Accepted offer to payroll contract: the protected handoff" width="560" height="315" frameborder="0" loading="lazy" allow="accelerometer; clipboard-write; encrypted-media; gyroscope; picture-in-picture" allowfullscreen></iframe>
<p><a href="https://www.youtube.com/watch?v=RVb_s5T0wyU">Accepted offer to payroll contract: the protected handoff</a></p>
</div>

## The company this page follows

Same illustrative demo structure as the rest of this book: one fictional company, Meridian
Interiors. Its name, its roles and every person shown are synthetic; none of it represents a real
customer, a real headcount or a real payroll figure.

## A frozen copy of the offer, not a new form

The draft contract's review screen does not ask anyone to re-enter the package. It shows a frozen
copy of exactly what the candidate accepted — position, effective date, the annual CTC, and the
same basic/HRA split the compensation engine computed when the offer was raised — next to the
contract's own current state (Draft, or Active once someone has activated it). Reviewing this
screen is how HR confirms the contract matches the offer before doing anything with it.

## Activation is a deliberate, explicit, audited action

Nothing in this chain auto-activates. A visible "Activate contract" action is the only way a draft
contract starts being payable, and the system records exactly who did it and when, shown back on
the same screen afterward. Nothing about *who* may click it is restricted to a different person
from the one who converted the candidate — but every illustrative example in this book happens to
use someone else anyway, the same maker-checker habit this book uses for requisitions and offers:
a different approver, a different authority, a second pair of eyes before anything becomes
payable.

## What changes the moment it's activated

The contract's own status flips immediately, and so does the surrounding product: the employee's
record reflects an active contract right away, and that employee now appears wherever the product
lists employees with an active contract. This part of the product answers "is this contract
active" with a live, direct check every time it's asked — there's nothing cached or batched about
it.

A separate, independent system also *notices* an employee who has no active contract yet and
raises that as something for HR to look at — but that system works by periodically re-checking the
company's roster, not by reacting the instant a contract changes. Expect a short delay, not an
instant update, from that separate observation — the contract and the employee record themselves
are already correct the moment the action completes.

## Mitra recommends; it never activates

Mitra can read everything above and tell HR what it means — including flagging an employee with no
active contract as something to look at. It does not have, and does not use, any action that
activates a payroll contract. The activation shown in this story is a human action, taken on this
screen, by a named person, every time.

## Related reading

- [Interview feedback, an approved offer, and a new hire](https://docs.blueonehr.com/books/enterprise/page/interview-feedback-an-approved-offer-and-a-new-hire)
- [The connected HR lifecycle](https://docs.blueonehr.com/books/enterprise/page/the-connected-hr-lifecycle)