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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 clarify the terms and conditions of employment, such as the employee's status (permanent or casual), work hours, overtime pay, notice periods for termination, and award coverage classification. Obee notes that employers must provide written information regarding award coverage, highlighting the necessity of an employment contract for both clarity and legal obligation.