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In this HR FAQ episode, the video discusses the crucial differences between an offer letter and an employment agreement, emphasizing the potential legal implications of confusing the two. An offer letter is defined as any communication from an employer to extend a job offer to a candidate. Upon acceptance, the candidate is expected to join and begin onboarding. Offer letters typically outline important details about the position, such as the job title, salary, supervisor, work schedule, and job expectations. The primary goal of the offer letter is to provide candidates with clear and comprehensive information about the position they are being offered.