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In this tutorial, the distinction between an offer letter and an employment agreement is clarified. An offer letter refers to any communication from employers extending a job offer to a candidate, which if accepted, leads to onboarding. It typically contains details such as position title, salary, supervisor, schedule, and expectations, helping candidates understand their offered role better. However, the speaker warns that confusing these two terms could lead to legal complications, emphasizing the importance for HR to ensure clarity and protect the employer from unintended consequences in the recruitment process.