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Yeah certain models have OTA (over the air) updates available which the phone will automatically do it for you.
Others you have to go to either your phone company's (Voda, Orange etc) website and look on there for information and others you'll have to go the manufacturers website.
Although, if you've got like an older android phone G1, Magic etc; which don't have no newer firmwares, you can update to the newest firmware by downloading a ROM designed for that device from http://www.cyanogenmod.com/