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In this video tutorial, the distinction between an offer letter and an employment agreement is clarified, highlighting that these terms are often confused. An offer letter serves as a communication tool for employers to extend a job offer, providing candidates with key details about the position such as title, salary, supervisor, schedule, and expectations. While it helps candidates better understand the role, it is essential for HR to recognize the legal implications and differences between the two documents to prevent unintended consequences. The discussion aims to educate on how to properly differentiate these terms and protect the employer's interests.