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Simon Obee from Employment Innovations discusses free downloadable employment contract templates available for Australian businesses. The templates cater to full-time, part-time, and casual employees. He emphasizes the importance of having an employment contract, as it clarifies the terms and conditions of employment. Key aspects include defining the employee's status (permanent or casual), outlining start and finish times, entitlements for extra pay, notice periods for termination, and coverage under modern awards. Employers must provide this information in writing to ensure compliance. Without contracts, these critical details may be unclear, leading to potential misunderstandings.