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In this episode of HR FAQ, the distinction between an offer letter and an employment agreement is clarified, highlighting that these terms are often used interchangeably but have significant differences. An offer letter is defined as any communication from an employer extending a job offer to a candidate, detailing aspects such as job title, salary, supervisor, schedule, and expectations. It provides candidates with clarity about the position offered. Understanding this difference is crucial for HR to protect employers from potential legal consequences that may arise from misunderstandings regarding these documents.