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In this video tutorial, the difference between an offer letter and an employment agreement is clarified. An offer letter is a communication used by employers to extend a job offer, detailing aspects such as job title, salary, supervisor, schedule, and expectations. It provides candidates with a clearer understanding of the position. However, it is important to distinguish this from an employment agreement, which may have more binding legal implications. Confusing the two can lead to unintended legal consequences. The tutorial aims to help HR professionals navigate these distinctions effectively to protect the employer's interests.