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In this video tutorial, Matthew explains how to create an employment rejection letter using LegalTemplates.net. He instructs viewers to click on the link provided, and then navigate to "Business Forms" on the site. From there, users should find the "Employment" option on the left sidebar and scroll down to select the "Employment Rejection Letter" to create a document. He emphasizes that it is a quick process, requiring information such as the company's details (name, address, city, state, zip code, phone number) and the candidate's information (e.g., name and location). Matthew uses a sample name, "Matt King," to demonstrate entering the candidate's information.