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Simon Obee from Employment Innovations discusses 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 to clarify the terms and conditions of employment, such as the employee's status (permanent or casual), work hours, additional pay for long hours, notice periods for termination, and applicable modern awards and classifications. Obee highlights that employers must provide written information about award coverage, reinforcing the necessity of a formal employment contract to avoid misunderstandings.