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In this video, Matthew explains how to create an employment offer letter using legal templates. He guides viewers to find the necessary templates through a link provided in the video description. First, he instructs to click on "view all business forms" and select "employment" from the side panel. Next, he demonstrates how to create the document by entering the company's name and address, identifying the sender (e.g., CEO, King Sender), and specifying the recipient's details. He highlights the importance of including the position, responsibilities, and reporting structure in the letter, along with compensation details.