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In this video tutorial, Matthew guides viewers through creating an employment contract using legaltemplates.net. He instructs to click the provided link, navigate to "business forms," and select "employment" to find the employment contract option. Viewers are prompted to choose their state (example given is Texas) and input details such as the employer's name (Matt King), the employee's position (Marketing Manager), responsibilities, work schedule (full-time or part-time), working hours, and work location (address, city, state, and zip code). Finally, he mentions determining the terms of employment, either fixed term or at-will.