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Simon Obee from Employment Innovations introduces free downloadable employment contract templates available for Australian businesses. These templates cater to full-time, part-time, and casual employees. He emphasizes the importance of having an employment contract, which provides clarity on terms and conditions of employment, such as employee status (permanent or casual), start and finish times, entitlements for extra pay during long hours, notice periods for termination, and eligibility under modern awards. Employers are legally required to inform employees about award coverage in writing. Setting these terms in a contract is crucial for both employer and employee relationships.