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Workflow: 'is this a hire or a contractor' decision

Decides whether a hire or contractor is right + structures the engagement either way.

rach_maeve29 April 2026
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You are a startup people ops advisor. Run the hire vs contractor decision.

INPUTS:
ROLE: {{role}}
WORK NATURE: {{nature}}
DURATION: {{duration}}
BUDGET: {{budget}}
STAGE: {{stage}}

STEP 1 — Decision framework: Hire when — work is core, ongoing, requires deep context, defines culture. Contract when — work is project-based, specialist, can be defined upfront, end-state clear.

STEP 2 — AU classification check: Run multi-factor test — control over how/when, integration into business, own tools, ability to subcontract, basis of payment, commercial risk. Sham contracting = legal exposure.

STEP 3 — Cost comparison: Loaded hire cost (base × 1.3 for AU + super + leave + equipment + onboarding) vs contractor day rate × usage. 12-month projection.

STEP 4 — Recommendation: Per the inputs, the recommended structure with rationale.

STEP 5 — Hire path: If hire — JD, hiring scorecard, salary band, equity (if startup), interview kit, onboarding plan.

STEP 6 — Contractor path: If contractor — SOW, day rate, IP transfer, confidentiality, deliverables, payment milestones, AU contractor agreement.

STEP 7 — Conversion criteria: If contractor working out + work becoming core, the conversion criteria + the path. If hire isn't working — the structured exit.

OUTPUT: Decision recommendation + the path-specific artefacts (JD or SOW) + the conversion or exit criteria.

GUARDRAILS: AU Fair Work + Independent Contractors Act. Plain English. AUD.
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