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In this video tutorial, Matthew guides viewers on how to create an employment contract using legaltemplates.net. He instructs to click on a provided link, which leads to the business forms section. From there, users should select "employment" to access the employment contract option. Matthew demonstrates by choosing Texas as the state and entering "Matt King" as the employer's name, with the employee's position titled "Marketing Manager." He emphasizes the importance of specifying the employee's responsibilities, work schedule (full-time or part-time), and the work location, including address and zip code. Lastly, he notes that terms of employment can be either fixed-term or at-will.