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In this video tutorial, Marg Hrxpert discusses the Confirmation Letter of HRD Module. This document is given to an employee after confirmation of their job or position in an organization. The letter confirms the employee's position in the company for a specific role. The process of creating a confirmation letter in the software involves navigating to the HRD module, employee reports, and selecting the confirmation letter option. Fields such as Employee Name are filled out to generate the letter for the selected employee.