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In this episode of HR FAQ, the distinction between an offer letter and an employment agreement is explored, highlighting the potential confusion and legal implications that may arise from using these terms interchangeably. An offer letter is defined as any communication through which an employer extends a job offer to a candidate. Upon acceptance, the candidate will join the company and begin the onboarding process. Offer letters typically detail aspects of the role, such as job title, salary, supervisor, schedule, and expectations. Understanding the differences between these documents is crucial for HR to protect employers from unintended legal consequences.