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In this video tutorial, the speaker discusses how to draft an employment contract for small business owners. They begin by describing their template, which serves as a starting point. The contract should be issued on the employer's letterhead, featuring their name and address, and addressed directly to the employee. After ensuring satisfaction with the content, two copies are sent out for the employee to sign; one is returned to the employer for record-keeping, ensuring both parties have a signed copy. The contract also outlines the employer's obligations under the Terms of Employment Information Act of 1994, emphasizing key components to watch out for during the drafting process.