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Simon Obee from Employment Innovations discusses free downloadable employment contract templates available for businesses in Australia. These templates cater to full-time, part-time, and casual employees. He emphasizes the importance of having an employment contract to provide clarity on employment terms, such as employee classification (permanent or casual), start and finish times, entitlements for extra pay during long hours, notice periods for termination, and award coverage details. Employers are required to give written information about award coverage, making employment contracts essential for defining these aspects and ensuring compliance.