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The video tutorial explains the employee PTO and vacation request process, highlighting a chart that facilitates oversight in approving or denying time off requests. The process begins with the employee filling out a form detailing their request. Upon submission, the supervisor receives an email notification to review the request. The manager can then easily approve or deny it, and the employee is subsequently informed of the decision. This process allows for a single approval level, or it can be extended to include multiple approval levels as necessary.