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In this video, the presenter discusses how to draft an employment contract for small business owners. They share their contract template as a starting point and highlight important considerations. The contract should be on the employer's letterhead, including the name and address. It is addressed to the employee and sent in duplicate for signing. Once the employee signs both copies, one is returned to the employer. Additionally, the contract ensures compliance with the Terms of Employment Information Act of 1994, emphasizing the need for clarity and proper documentation in employment agreements.