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Simon Obee from Employment Innovations discusses free downloadable employment contract templates for businesses in Australia. The templates cater to full-time, part-time, and casual employees, and can be accessed via a provided link. Having an employment contract is crucial as it clarifies the terms and conditions of employment, including the employee's status (permanent or casual), work hours, pay for overtime, notice periods for termination, and award coverage. Employers must inform employees about their award status in writing. An employment contract helps establish clear expectations and obligations for both parties.