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In this episode of HR FAQ, the importance of distinguishing between an offer letter and an employment agreement is highlighted. While often used interchangeably, these terms have significant differences that can lead to confusion and legal issues. An offer letter is a communication used by employers to extend a job offer to a candidate, outlining essential details about the position, including title, salary, supervisor, schedule, and expectations. It helps candidates gain a clearer understanding of their potential role. The episode emphasizes the need for HR to protect employers from unintended legal consequences by carefully clarifying these terms.