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Simon Obee from Employment Innovations discusses free downloadable employment contract templates for businesses in Australia. These templates cover full-time, part-time, and casual employees. The importance of having an employment contract includes providing clarity on employment terms, such as whether an employee is permanent or casual, their start and finish times, entitlement to extra pay for long hours, termination notice periods, and award coverage classification. Employers are required to inform employees about award coverage in writing. Having these details outlined in a contract helps ensure both parties understand their rights and obligations.